LOS ANGELES - Grocery chains Albertsons and Vons have agreed to pay nearly $4 million to settle a civil complaint alleging false advertising and unfair competition.
The complaint alleged that Albertsons and Vons unlawfully charged customers higher prices than what was advertised.
According to the complaint, Albertsons had issues with inaccurate weights on the labels of their products. Some items sold by weight, such as produce, meats, and baked goods had less product in the package than what was displayed on the label.
Albertsons and Vons are now required to pay $3,213,000 in civil penalties and $749,500 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.
"False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules," LA County District Attorney Geroge Gascón said.
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The LA County DA's Consumer Protection Division, in partnership with the consumer protection units of the district attorneys’ offices of Marin, Alameda, Sonoma, Riverside, San Diego, and Ventura counties, investigated and prosecuted the case.
As a result, the judgment prohibits the companies from engaging in false or misleading advertising and requires them to implement a Price Accuracy Program, including a Price Accuracy Guarantee that allows a customer to be compensated up to $5 if they are overcharged.
The DA's office said the program is an incentive to encourage people to report false advertising to the store as soon as it is discovered.