5 days ago
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.
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