Investigation finds Kroger overcharged customers for sale items
If you've ever been charged a regular price instead of the sale price at a Kroger store, you're not alone.
A recent joint investigation found that nationwide grocer Kroger has been overcharging its customers on sale items.
Well-known magazine Consumer Reports, along with other news organizations, found the typical Kroger shopper 'unknowingly paid full price' on more than 150 items discounted or on sale at stores across the U.S.
The report findings, released on Wednesday by Consumer Reports, said Cincinnati-based Kroger, the nation's largest grocery chain, overcharged on select items, from meat to cereal to instant coffee. On average, the overcharge was $1.70 per item or more than 18% off the sale price.
Working with The Guardian and the Food & Environment Reporting Network, the report stems from authors checking grocery prices for errors after '… learning that Kroger workers in Colorado who are currently in labor union negotiations with the company were alleging widespread errors on price labels — a problem they say has been going on for years and that Kroger is well aware of,' Derick Kravitz, Consumer Reports investigative reporter wrote.
'Our findings suggest the typical Kroger shopper ends up paying far more for what they think are discounted items — all during a time of inflation and economic uncertainty,' Kravitz wrote.
Consumer Reports recruited shoppers and, the report said, checked sales price tags at 26 Kroger and Kroger-owned stores in March, April and May. Shoppers found expired shelf tag labels that led to overcharges on 150 grocery items.
'The Consumer Reports allegations boil down to misinformation, reviewing a handful of discrete issues from billions of daily transactions,' according to a Kroger spokeswoman. 'It in no way reflects the seriousness with which we take our transparent and affordable pricing.'
A reason cited for pricing errors, according to Kroger employees, is not enough staff to change out shelf price labels.
In recent years, Kroger has reported record sales and profits along with a strong stock performance.
Consumer Reports, citing data from the Occupational Safety and Health Administration (OSHA), found Kroger has 'significantly cut the number of workers in most of its stores and the number of hours those full- and part-time employees work each week.'
Across the country under the Kroger Co. umbrella, stores include Kroger stores, Harris Teeter, Fred Meyer, Fry's and Ralphs.
While some customers sought price adjustments for the errors, a couple in Ohio also filed complaints with their state's attorney general's office.
Kroger customers in California, Illinois, Ohio and Utah, the report said, have filed class-action lawsuits alleging pricing errors.
Kroger stores noted for pricing errors were in different regions of the U.S. and included Michigan stores.
Regular priced and discount labels.
Sought samples on different days of the week, various times of the day and conducted repeat visits.
Looked at name-brand and store-brand items.
Shoppers found that 'one-third of the expired sales tags were out of date by at least 10 days and prices on five of the products were expired by at least 90 days,' the report said.
More: Does Meijer support DEI? What company, other Michigan grocery, retailers say
After reviewing complaint and inspection records, Consumer Reports said Kroger is cited because its 'executives have repeatedly been made aware of pricing problems in its stores,' including those in Michigan.
Consumer Reports pointed out that deceptive pricing issues have happened at other grocers, and penalties were paid in some cases.
Kroger operates 119 Michigan stores, and CR's report cited that since 2020, the state's attorney general's office received 229 consumer complaints about Kroger.
More: Senior shoppers 55 and up get a 5% discount at Kroger on Wednesday
'In 25 of those cases, the attorney general's office has found violations of Michigan state law concerning price errors, overcharging, and bait and switch tactics, and returned nearly $1,600 to Kroger customers.'
Edgar Dworsky, a longtime consumer advocate, told Consumer Reports that 'people should pay the price that is being advertised, that's the law.'
Founder of the Consumer World website, Dworsky is also behind a Massachusetts grocery pricing protection law created 40 years ago, according to Consumer Reports.
'The issue here is that shoppers can't rely on the shelf price being accurate, and that's a big problem,' Dworsky said.
Dworsky, in recent years, has also been outspoken in identifying shrinkflation in certain products.
In Michigan, consumers are protected by what's known as the 'Shopping Reform and Modernization Act' also called the 'Scanner Law' which requires that 'prices for most items be clearly displayed' near or where the product is displayed. Signs, electronic readers or price stickers can, according to the law, be used to indicate the price of an item.
There are exceptions to the law, like those items that are sold by weight or volume and not in packages are exempt from the Scanner Law.
Also, how consumers are compensated has certain restrictions, but generally here's what can happen when they are charged more than the price displayed.
Consumers (buyers) are given an amount equal to the difference between the price displayed and the price charged for the consumer item. For example, if the price of something is $1.59 and scans at $2.09, the difference is 50 cents.
The buyer receives a bonus, also called a 'bounty' of 10 times the difference that is not less than $1 and a maximum of $5. In the example above, that would be $5. Note: If you bought multiples of the same item, the bonus only applies to one item, not all of them.
Using the example, the consumer would receive $5.50 as a total bonus.
If a seller refuses to pay, the consumer can take the seller to court and may receive up to $250 in damages and up to $300 in attorney's fees, according to the law.
Responding to the report, a Kroger company representative stated that the company is 'committed to affordable and accurate pricing.'
Kroger told Consumer Reports that it regularly price checks 'millions of items weekly to ensure our shelf prices are accurate.'
The grocer also said the price tag errors cited in the report were a 'few dozen examples across several years out of billions of customer transactions annually.'
'While any error is unacceptable, the characterization of widespread pricing concerns is patently false,' the company told Consumer Reports.
In addressing price issue, Kroger also has in place its 'Make It Right' policy. The policy allows employees to address and fix pricing issues on an individual basis.
In a statement, Kroger said its 'Make It Right' policy addresses any situation when we unintentionally fall short of a customer's expectations,' the report said.
Contact Detroit Free Press food and restaurant writer Susan Selasky and send food and restaurant news and tips to: sselasky@freepress.com. Follow @SusanMariecooks on Twitter. Subscribe to the Free Press.
This article originally appeared on Detroit Free Press: Report finds some Kroger stores overcharged customers for sale items

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