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Grocery Outlet Sued Over False Savings, 'Fictitious' Price Comparisons
Grocery Outlet Sued Over False Savings, 'Fictitious' Price Comparisons

Newsweek

timea day ago

  • Business
  • Newsweek

Grocery Outlet Sued Over False Savings, 'Fictitious' Price Comparisons

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Grocery Outlet, a discount supermarket chain known for its "Bargain Market" branding, is facing a class-action lawsuit in Oregon over allegations of deceptive pricing practices. Newsweek contacted Grocery Outlet for comment via email outside of usual working hours on Saturday. Why It Matters Grocery Outlet Inc. is a California corporation that does business in Oregon through its branded grocery outlet locations. Since 1971, Oregon law has protected consumers from the use of unfair and deceptive reference pricing practices. The lawsuit, as reported by Grocery Dive, was filed in Multnomah County Circuit Court on Monday and claims that the retailer systematically used fabricated "elsewhere" prices to create the illusion of significant savings, violating Oregon's Unlawful Trade Practices Act. "This putative class action arises from a widespread and coordinated scheme by Grocery Outlet Inc. and its affiliated Oregon operators to mislead consumers through the use of fictitious 'elsewhere' pricing," the lawsuit states. "Defendants 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 lawsuit adds. "These deceptive practices created the illusion of significant savings," the filing continued, "when, in fact, consumers often paid the same or more than they would have at other local retailers." The lawsuit claims that Grocery Outlet's pricing strategy violates "multiple provisions of Oregon's Unlawful Trade Practices Act and related regulations, including prohibitions against false or misleading price comparisons and requirements for transparency in advertising discounts." File photo: The exterior of a Grocery Outlet store is seen on February 25, 2025 in San Rafael, California. File photo: The exterior of a Grocery Outlet store is seen on February 25, 2025 in San Rafael, To Know The complaint has been brought by three Oregon consumers, named as Schearon Stewart, John Franz, and Roger Sullivan, and represented by OCJ Law, P.C., in partnership with Oregon Consumer Justice. The complaint alleges that Grocery Outlet advertised inflated or fictitious reference prices without identifying the source of those comparisons, as required by Oregon law. In some instances, the lawsuit claims that the "elsewhere" prices cited by the retailer were higher than the actual prices offered by nearby competitors. The filing alleges that "the violations are rampant within the stores," citing as an example: "Tide pods at Grocery Outlet in King City are sold for $12.99 with a stated 'elsewhere' price of $18.99." However, the lawsuit cites that "there is no competitor in the same geographic area called 'elsewhere' and the reference price use of that term is prohibited by Oregon law. "Second, a survey of the grocery stores in the same geographic area shows the actual prices of that same product never approached $18.99. Instead, at the nearest competitors it was priced for $12.99 (Fred Meyers) and $12.97 (Walmart)." File photos: One of the "elsewhere" signs named in the lawsuit is seen on display; and the exterior of Grocery Outlet in Salem, Oregon. File photos: One of the "elsewhere" signs named in the lawsuit is seen on display; and the exterior of Grocery Outlet in Salem, Oregon. Lawsuit/ Google street view/Lawsuit/ Google street view "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," the lawsuit alleges, as reported by Supermarket News. Law firm Tycko & Zavareei LLP said that the lawsuit seeks injunctive and equitable relief to stop the alleged unlawful conduct and hold Grocery Outlet accountable. Plaintiffs intend to amend the complaint to seek monetary damages on behalf of the class after the statutory notice period under Oregon law has expired. What People Are Saying F. Peter Silva II, attorney at Tycko & Zavareei LLP, said: "This case is about fairness and transparency. Oregon law is clear: if you advertise a discount, you must be honest about where that comparison comes from. Grocery Outlet's use of vague and unverifiable 'elsewhere' prices deprived consumers of the ability to make informed purchasing decisions and unfairly competed with other businesses." What Happens Next The lawsuit states the plaintiffs, "representing a class of similarly situated Oregon consumers, seek injunctive and equitable relief to halt these practices and hold Defendants accountable for the financial harm caused by their unlawful conduct." The case adds to Grocery Outlet's legal troubles, as the company is dealing with a separate lawsuit, filed earlier this year, relating to security fraud. The lawsuit is the latest in a series targeting grocers over their pricing and promotional tactics. Last year, as reported by Grocery Dive, Albertsons agreed to a $3.9 million settlement following a civil complaint that claimed the retailer unlawfully overcharged customers. More recently, Publix was hit with a class-action lawsuit alleging it overcharged shoppers for discounted items sold by weight, including meats, cheeses, and deli products.

The cheapest grocery stores in 2025 have been named — and the first-place winner is expanding in NYC
The cheapest grocery stores in 2025 have been named — and the first-place winner is expanding in NYC

New York Post

time2 days ago

  • Business
  • New York Post

The cheapest grocery stores in 2025 have been named — and the first-place winner is expanding in NYC

Check out these checkouts. As food prices are expected to rise by up to 3.5% in 2025, according to the USDA, many Americans are looking for ways to keep their grocery bills in check. A recent study by MarketForce, which surveyed over 4,300 shoppers, highlights the grocery stores that best balance affordability with quality. 8 As food prices are expected to rise by up to 3.5% in 2025, according to the USDA, many Americans are looking for ways to keep their grocery bills in check. Whether it's inflation, supply chain issues or simply the high cost of living, everyone could use a break at checkout. Here's your chance, according to the roundup, with seven grocers helping customers stretch their dollars without sacrificing taste or freshness. 1. Lidl: Discount giant with a European twist 8 Lidl food market was rated the most affordable, quality grocery store in the country. Refrina – Lidl has been a rising star in the U.S. discount grocery scene, especially in NYC, where it has been expanding locations, including in Brooklyn. The store layout is inspired by European roots, which helps Lidl keep its overhead low by minimizing staffing and using a streamlined warehouse-style setup. This helps reduce costs for shoppers, making it one of the most budget-friendly options for families. According to the MarketForce study, an impressive 81.4% of customers return to Lidl because of its unbeatable value. The store's affordable pricing is made better with the quality of its products, the report notes. In addition to the usual grocery items, Lidl also surprises customers with seasonal and non-food items, from power tools to potted plants. 2. WinCo Foods: Wholesale prices — without a membership 8 WinCo operates a warehouse-style model focusing on low prices by cutting out the middleman. Oksana – If you've ever dreamed of paying Costco prices without the membership fee, WinCo Foods is where it's at. This employee-owned chain has become a household name in many parts of the U.S., with 139 locations spread across 10 states. WinCo operates a warehouse-style model focusing on low prices by cutting out the middleman. It buys directly from manufacturers and even has customers bag their own groceries. The strategy must be working: a whopping 73.1% of shoppers cited value for money as their main reason for frequenting WinCo. Its bulk sections are also noted as a treasure trove for those seeking to stock up on essentials like flour, rice and dried goods at steep discounts. 3. Grocery Outlet: Where discounts meet discovery 8 According to the survey, 71.4% of shoppers reported returning to Grocery Outlet for the exceptional value it provides. Sundry Photography – Grocery Outlet's business model revolves around selling overstocked or discontinued items at discounted prices. Locations vary by region, but the appeal is universal: customers can score big on both name-brand and private-label products. Fresh produce, dairy and meat are always stocked, while their natural and organic sections offer a variety of specialty items like vegan and gluten-free foods — often for less than what you'd find at other places. Notably, 71.4% of shoppers reported returning to Grocery Outlet for the exceptional value it provides. 4. Aldi: The discount king 8 With a European-inspired model, Aldi keeps costs low with fewer staff, simple displays and self-bagging of groceries. JHVEPhoto – Aldi's reputation for value is legendary — and the numbers don't lie. The MarketForce study found that 70.4% of shoppers favor Aldi for the exceptional value it offers. With a European-inspired model, Aldi keeps costs low by minimizing staff, using simple displays, and encouraging customers to bag their own groceries. Despite this no-frills approach, Aldi shoppers can find everything from pasta and canned goods to frozen items and fresh produce. If you're looking to make your budget stretch even further, Aldi is also home to great deals on dairy, baked goods and even alcohol. 5. Wegmans: Upstate store spreads far and wide 8 A solid 68.7% of MarketForce respondents cited value for money as their main reason for choosing Wegmans. JHVEPhoto – Known for its vast selection of high-quality store-brand products, Wegmans is a favorite among many shoppers, particularly in the Mid-Atlantic region. The family-owned grocer boasts more than 110 stores and has become well-known for its excellent customer service and affordable prices. A solid 68.7% of MarketForce respondents cited value for money as their main reason for choosing Wegmans. Wegmans stands out for its wide range of organic and healthy food options, from fresh produce to gluten-free snacks. The grocer expanded to Long Island earlier this year and continues to extend its reach beyond the Northeast. 6. Trader Joe's: Trading up 8 Trader Joe's has quirky offerings and high-quality private-label goods that have become fan favorites. jetcityimage – Despite its smaller footprint compared to traditional grocery stores, about 67.2% of study participants mentioned that they return because of the store's value. While it's famous for its affordable and fun frozen-food options, much-beloved Trader Joe's also serves up fresh produce, unique snacks, seasonal items and high-quality private-label goods. 7. Costco: Bulking up 8 Costco members appreciate the wholesale prices on everything from household essentials to luxury items. JHVEPhoto – While Costco may require a membership, the savings it offers can make it worth the investment. Known for its bulk-buying model, Costco allows customers to purchase everything from household essentials to luxury items at steeply discounted prices. Whether it's buying a year's supply of toilet paper, a bulk pack of fresh fruit, gourmet cheeses or pantry staples, according to the MarketForce study, 61.4% of customers return to Costco for its impressive deals.

Merkley leads bill protecting LGBTQ from ‘hateful' Trump policies
Merkley leads bill protecting LGBTQ from ‘hateful' Trump policies

Yahoo

time3 days ago

  • Politics
  • Yahoo

Merkley leads bill protecting LGBTQ from ‘hateful' Trump policies

PORTLAND, Ore. (KOIN) – In an effort to protect the LGBTQ+ community from 'hateful' policies under the Trump administration, Senator Jeff Merkley (D-OR) is leading a bill, that he says, will counter anti-LGBTQ+ executive orders. The No Place for LGBTQ+ Hate Act, which Merkley introduced alongside Congresswoman Becca Balint (D-VT), would ensure that executive orders targeting lesbian, gay, bisexual, transgender, queer, intersex, and other Americans have no effect while also ensuring no federal funds are used to carry out those orders. The lawmakers said the bill takes aim at several executive orders issued by President Donald Trump, including an order signed on Trump's first day back in office that calls for the federal government to define sex as male or female — and for those sexes to be reflected on official documents such as passports. Class action lawsuit accuses Grocery Outlet of deceptive pricing in Oregon stores As reported by , the order rejects the idea that someone could transition to another gender or could identify as something other than male or female. The executive order states 'Across the country, ideologues who deny the biological reality of sex have increasingly used legal and other socially coercive means to permit men to self-identify as women and gain access to intimate single-sex spaces and activities designed for women, from women's domestic abuse shelters to women's workplace showers.' However, reports that the order is at odds with statements from transgender Americans who say they try to use those spaces to align with their identity and not to ''gain access to intimate single-sex spaces and activities designed for women.'' British man posed as billionaire, tricked Portlander in $1.9 million online romance scheme Merkley and Balint said their bill also takes aim at an executive order to reinstate a ban on transgender people entering the military, an order to prevent transgender youth from receiving along with an order banning transgender students from participating in school sports. 'Freedom is the right to safely live as your authentic self without fear of harassment, discrimination, or violence,' Sen. Merkley said in a press release announcing the bill. 'President Trump and Republicans are attacking our LGBTQ+ neighbors, friends, and family members by rubberstamping discrimination in every aspect of daily life. As we mark Pride Month this year, we say 'hell no' to this hate and honor those who have fought for LGBTQ+ equality by never giving up on the vision of America as a land of freedom for all.' 'Trump cannot take away our rights or our health care just with the stroke of a pen. I'm standing with Senator Merkley and my colleagues to show the Trump administration that their hate and dehumanizing rhetoric targeting queer Americans doesn't intimidate us. We won't back down when it comes to protecting our rights. No matter how much they try to erase us and our history, LGBTQI+ people are valued members of every community across this country,' Rep. Balint added. The bill is co-sponsored by several lawmakers including Senators Ron Wyden (D-OR), Cory Booker (D-NJ), Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) along with Representatives Maxine Dexter (D-OR-03), Jasmine Crockett (D-TX-30) and Jamie Raskin (D-MD-06). Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Salem career criminal sentenced for selling drug-infused ‘Cocoa Puffs,' ‘Cinnamon Toast Crunch' bars
Salem career criminal sentenced for selling drug-infused ‘Cocoa Puffs,' ‘Cinnamon Toast Crunch' bars

Yahoo

time3 days ago

  • Yahoo

Salem career criminal sentenced for selling drug-infused ‘Cocoa Puffs,' ‘Cinnamon Toast Crunch' bars

PORTLAND, Ore. (KOIN) – A Salem man was sentenced to prison on Wednesday after leading an illegal operation that manufactured and sold drug-infused cereal and candy, the U.S. Attorney's Office for the District of Oregon announced. Authorities said 45-year-old Jered Hayward was sentenced to 13 years in prison after previously pleading guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder the proceeds. Hayward additionally agreed to forfeit assets worth more than $2 million, officials said. According to court documents, Hayward led a large-scale THC and psilocybin production facility headquartered in Salem. Class action lawsuit accuses Grocery Outlet of deceptive pricing in Oregon stores As part of the operation, Hayward and his employees infused or sprayed cereal and candy with potent THC oils. The edibles were then placed in packages that looked similar to legitimate food products — marketing them as Cinnamon Toast Crunch Krispie Bars, Froot Loops Krispie Bars and Cocoa Puffs Krispie Bars among other popular cereal brands — and sold them in the United States and internationally. Authorities said while there is no evidence that Hayward marketed the products toward minors, officials said the way the edibles were packaged posed a risk to children who are often unable to comprehend fine print warnings on THC products. Drug trafficker sentenced to 15 years in prison after largest meth bust in Oregon history According to the U.S. Attorney's Office for the District of Oregon, the organization used encrypted communications such as Telegram to market and sell orders while masking money laundering transactions. Authorities say Hayward had no permits or licenses to produce or sell the products, noting the entire operation was illegal. Hayward has an extensive criminal history, including three prior state and federal convictions for marijuana and fentanyl trafficking, officials said, adding that based on those convictions, he is considered a career criminal under federal law. As part of his guilty plea, Hayward agreed to forfeit his Salem production facility, over $1 million in cash, $640,000 in cryptocurrency and bank account funds, more than $400,000 worth of gold and silver, jewelry, a Rolex watch, 12 vehicles, two UTV's and boats. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Class action lawsuit accuses Grocery Outlet of deceptive pricing in Oregon stores
Class action lawsuit accuses Grocery Outlet of deceptive pricing in Oregon stores

Yahoo

time4 days ago

  • Business
  • Yahoo

Class action lawsuit accuses Grocery Outlet of deceptive pricing in Oregon stores

PORTLAND, Ore. () — Oregon patrons of a California-founded grocer are accusing the company of deceptive pricing. On Tuesday, Oregon Consumer Justice Law and other legal partners filed a class action lawsuit against Grocery Outlet on customers who believe they have paid the same price — or more — for items that were advertised as discounted when compared to competitors. Filed in Multnomah County Circuit Court, the complaint alleges the grocery chain has violated the Unlawful Trade Practices Act with its 'elsewhere' pricing model. The three Oregonians listed as plaintiffs have shopped at Grocery Outlet within the past year and saw this deceptive pricing at locations in Salem, King City and North Portland's St. John's neighborhood in mid-May, according to the lawsuit. 'Defendants claim this model particularly helps its customers who are at risk for food insecurity, which would include those who receive food subsidies and whom most need to stretch their dollars to feed families in need,' the complaint reads, referring to Grocery Outlet's bulk purchases of 'overrun, closeout, or expiring' products. 'In reality, defendants collectively conspire to sell these 'opportunistic' and substandard groceries to Oregon consumers through the illegal use of fictitious reference prices, which Defendants vaguely refer to as 'elsewhere,'' attorneys said. Court documents show receipts of purchases that were advertised as having 'elsewhere' pricing, despite the fact that the product isn't sold anywhere else in the state. Oregon law establishes that this competitive pricing practice should be used for other companies in the geographic market area. Other purchases were sold by competitors in the area, but attorneys said Grocery Outlet failed to identify which one. The suit also alleges one plaintiff purchased oat milk for $3.19, with its 'elsewhere' price listed at $4.99, although Fred Meyer offered the same product for $1.99. According to Oregon Consumer Justice Law, more than 100,000 customers statewide could be eligible for the class action lawsuit. KOIN 6 has reached out to the grocery chain for comment. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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