Report: Some Kroger stores overcharged for groceries despite advertised discounts
Consumer Reports, along with other news organizations, found the typical Kroger shopper 'unknowingly paid full price' on more than 150 items marked as discounted or on sale at stores across the U.S.
Working with The Guardian and the Food & Environment Reporting Network, Consumer Reports found that Cincinnati-based Kroger overcharged on items ranging from meat to cereal to instant coffee. On average, the overcharge was $1.70 per item or more than 18% above the sale price.
The investigation began after Colorado Kroger workers alleged widespread pricing errors during labor union negotiations. Derek Kravitz, an investigative reporter with Consumer Reports, wrote that the workers say the overcharging goes back years and is a problem "that Kroger is well aware of."
'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.
Food prices have increased nearly 24 percent since 2020. In recent years, Kroger has reported record sales and profits along with a strong stock performance.
Shoppers recruited by Consumer Reports checked sales tags at 26 Kroger and Kroger-owned stores in March, April and May. Expired labels led to overcharges on 150 grocery items.
A spokesperson for Kroger, meanwhile, pushed back on the report. '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 that there's not enough staff to change out shelf price labels.
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.
There are 103 Kroger locations in Indiana, according to the chain's website. Of those, 24 are in Indianapolis.
Indiana law prohibits businesses from making misrepresentations during consumer transactions. The attorney general's office can investigate allegations of violations of Indiana's Deceptive Consumer Sales Act. IndyStar has emailed Indiana Attorney General Todd Rokita's office for comment.
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.
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