PORTLAND, ORE. — Safeway and its parent company, Albertson’s Cos., have agreed to pay a settlement of $107 million against a complaint that the companies falsely advertised buy-one-get-one-free (BOGO) promotions.
Safeway customers Schearon Stewart and Jason Stewart alleged the retailers overcharged them and other customers for meat products under the deception of a free item.
The products in question include petite beef sirloin; boneless pork chops; boneless chicken; boneless, skinless chicken breasts; chicken legs; beef bottom round; and beef eye of round that were sold within one year before the date of the complaint filed in July 2016.
One example of a BOGO promotion that the lawsuit listed was boneless pork chops sold at a retail price of $4.49 per pound, which were then sold at $12.99 per pound under the BOGO sale.
“When Albertson’s and Safeway stores offer meat products under these promotions, they raise the unit prices of the original meat product above the regular retail price,” the complaint said. “Thus, consumers are actually paying for the meat that is sold as ‘free’ in these special sales.”
Safeway and Albertson’s denied any wrongdoing but agreed to pay the settlement.
Customers who participated in the BOGO sales between May 4, 2015, and Sept. 7, 2016, are entitled to recover statutory damages. The lawsuit estimates each class member will receive an equal share of approximately $200.
The deadline to submit a claim form is July 10. A final approval hearing for the settlement is scheduled for the same day.