Major grocers, Albertsons, and Vons, have agreed to pay nearly $4 million to settle allegations of false advertising and unfair competition after being accused of misleading customers about product pricing and weights in California.
The settlement follows a civil complaint filed by a group of district attorneys, pointing out systematic issues with the grocery chain's pricing practices.
Consumers reported that Albertsons, affiliated with the chain, had been charging higher prices than advertised. They also noted major discrepancies in the weights and sizes of various products, including baked goods, produce, and meats.
They were also accused of charging more than the lowest advertised price.
"False advertising preys on consumers who are already facing rising costs, George Gascón, Los Angeles County District Attorney said.
On Thursday, Gascón announced that Albertsons would be paying out a $3.9 million settlement, which includes over $3 million in civil penalties and roughly $750,000 in restitution for costs associated with filing.
Following the prosecution of the case, Albertsons and its affiliates must cease any misleading advertising practices and ensure compliance with price accuracy standards. The chain will also undergo a three-year independent audit to verify adherence to these regulations.
The complaint was rolled out to enforce consumer protection laws and hold businesses accountable for fair practices. Albertsons has not admitted any wrongdoing.
Albertsons is also fighting a federal antitrust lawsuit as it attempts to merge with Kroger.
