Lawsuit alleges Grocery Outlet’s prices are not actually cheaper than other stores

Supermarket chain Grocery Outlet is currently facing a legal challenge regarding its pricing tactics, with a new lawsuit alleging that comparisons of their prices to those of other retailers are misleading and may breach state regulations. The lawsuit, filed on behalf of three Oregon residents by OCJ Law P.C., asserts that the grocery chain’s marketing strategy creates a false impression of substantial savings that does not hold up when compared to prices at nearby competing stores.

Grocery Outlet, a California-based company overseeing a network of franchise stores, is accused of overstating the savings customers can expect when shopping at their stores. The lawsuit specifically targets the vague nature of Grocery Outlet’s price comparisons. While the supermarket chain refers to prices “elsewhere,” it fails to identify specific competitors or sources for these price comparisons, as required by Oregon’s Trade Practices Act. In contrast, other grocery chains like WinCo provide specific information about the competitor stores being referenced in their pricing comparisons.

The lawsuit highlights instances where the “elsewhere” prices cited by Grocery Outlet did not match up with actual prices at nearby stores. For example, the lawsuit alleges that comparison prices for certain items were either non-existent in the market or significantly higher than prices found at competitors. A carton of oat milk priced at $3.19 at Grocery Outlet was purported to cost $4.99 elsewhere, but was discovered to be priced at just $1.99 at a Fred Meyer store. Similarly, a DiGiorno frozen pizza listed at $5.99 at Grocery Outlet with an “elsewhere” price of $8.99 was found to be priced at only $3.99 at Fred Meyer. One of the plaintiffs in the lawsuit, John Franz, was indicated to have overpaid for items at Grocery Outlet despite the perceived savings listed on his receipt.

The lawsuit aims to represent all Oregon residents who have shopped at Grocery Outlet in the past year, seeking to hold the company accountable for its allegedly deceptive pricing practices. OCJ Law P.C. and Oregon Consumer Justice, the nonprofit affiliated with the law firm, are pushing for clarity and transparency in pricing practices to protect consumers from misleading information. As the case moves forward in Multnomah County Circuit Court, it is expected that the lawsuit may uncover further instances of inflated price comparisons that could impact a significant number of consumers.

Ultimately, the legal challenge against Grocery Outlet sheds light on the importance of accurate and transparent pricing in the retail industry. Consumers rely on clear and truthful information to make informed purchasing decisions, and it is crucial for retailers to adhere to regulations that safeguard against deceptive marketing practices. By holding companies accountable for their pricing schemes, consumers can have confidence in the fairness and integrity of the retail market.