RivCo D.A. Announces $3.6M 'Overcharging' Settlement With Albertsons

RIVERSIDE, CA — Albertsons Companies, which operates 589 stores in California, will pay $3.6 million to settle a lawsuit accusing the grocer of mislabeling prices and false advertising, prosecutors announced Thursday.

Riverside County joined prosecutors all over the state to go after the grocer after an investigation revealed that stores were illegally charging customers higher than their lowest advertised price, according to the Riverside County District Attorney's office.

The Idaho-based grocery giant will pay $3.2 million in civil penalties and $749,500 in restitution to cover investigation costs and support the enforcement of consumer protection laws, prosecutors said.

The grocer also reportedly had inaccurate weights on the labels of their products. Some items that are typically sold by weight — produce, meats and baked goods — had less product in the package than was advertised on the label.

A grocer may only charge for the food's actual weight. The packaging cannot be included in that weight, officials said.

Albertsons Companies offered a statement:

"Albertsons, Vons, Pavilions takes this matter seriously and remains committed to ensuring that our customers can shop with confidence. We have taken steps to ensure our price accuracy guarantee is more visible to customers by posting signage at multiple locations at the front of our stores," said Courtney Carranza, a spokesperson for the grocer.

"We have conducted additional comprehensive training for associates to reinforce the importance of price accuracy and customer transparency. Additionally, we have enhanced price tracking systems to better ensure real-time accuracy at stores," Carranza added.

Not only will the judgment will bar grocers from engaging in false or misleading advertising, it will require them to create a Price Accuracy Program, which allows customers to be compensated up to $5 if they find they are overcharged.

"The program is an incentive to encourage consumers to report false advertising to the store directly as soon as it is discovered," The D.A.'s office said in a release on Thursday.

It is unclear what percentage Riverside County will receive from the $3.6 million settlement.

The case was filed by Marin, Riverside, Alameda, Los Angeles, San Diego, Sonoma and Ventura counties.