Dive Brief:
- Grocery Outlet is facing a class action lawsuit alleging the discounter used a scheme of false savings and “fictitious” references to competitors’ prices to market and sell items in Oregon.
- The lawsuit, which was filed in Multnomah County Circuit Court on Monday, claims the grocer violated Oregon laws and likely impacted more than 100,000 consumers statewide.
- The case adds to Grocery Outlet’s legal woes and marks the latest lawsuit facing grocers over their pricing and sales strategies.
Dive Insight:
The lawsuit claims Grocery Outlet had an ongoing practice of displaying “fabricated” price comparisons without clearly identifying the source of the reference prices, the lawsuit alleges.
The case claims Grocery Outlet violated Oregon state law by marketing items to in-state consumers with the claim of an “elsewhere” price comparison with a competitor that is not within the same geographic area. Grocery Outlet “systematically advertised grocery items with inflated or fabricated reference prices—purportedly representing competitor pricing—without identifying the source of those comparisons, as required by Oregon law,” the complaint alleges.
“These deceptive practices created the illusion of significant savings, when in fact, consumers often paid the same or more than they would have at other local retailers,” according to the filing.
Grocery Outlet did not respond to a request for comment.
OCJ Law, P.C., which partnered with consumer organization Oregon Consumer Justice, brought the lawsuit against Grocery Outlet. The plaintiffs are seeking a jury trial.
The lawsuit comes at a time when people in Oregon are dealing with higher costs of living and higher food insecurity rates, Oregon Consumer Justice said in a press release.
“This lawsuit shows how those looking to more affordably provide for their families by shopping at Grocery Outlet, a supposedly ‘bargain market’, end up paying roughly the same amount or even slightly more than if they had shopped at another store,” the consumer rights group said.
Grocery Outlet is also grappling with a separate class action lawsuit filed earlier this year alleging the company committed securities fraud between Nov. 7, 2023, and May 7, 2024, hurting its investors.
The deceptive pricing lawsuit against Grocery Outlet is the latest case alleging pricing and sale misconduct by grocers. Last fall, Albertsons agreed to pay $3.9 million to settle a civil law enforcement complaint alleging the company unlawfully upcharged customers at its stores. Earlier this year, Publix got hit with a class action lawsuit alleging the grocer overcharged consumers for certain on-sale foods sold by weight, such as meats, cheeses and deli items.
Clarification: The article has been updated to state that OCJ Law, P.C. brought the lawsuit against Grocery Outlet.
