The lawsuit argues Grocery Outlet uses fabricated reference prices labeled as “elsewhere” prices without identifying the actual competitor source.
PORTLAND, Ore. — Oregon Consumer Justice, a nonprofit consumer rights organization, filed a lawsuit against Grocery Outlet Inc. and dozens of its affiliated Oregon operators, alleging widespread use of fictitious “elsewhere” pricing that violates state consumer protection laws.
The lawsuit, filed by three Oregon consumers — Schearon Stewart, John Franz and Roger Sullivan — claim that the California-based grocery chain misleads customers through deceptive reference pricing practices via inflated or fabricated reference prices labeled as “elsewhere” prices without identifying the actual competitor source, a practice which the complaint claims is in violation of Oregon law.
“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 states.
Examples used in the lawsuit are based on plaintiffs’ shopping experiences. Sullivan purchased oat milk for $3.19 with an “elsewhere” price listed as $4.99, but the same product was for sale at Fred Meyer for $1.99. Similarly, Stewart bought DiGiorno pizza for $5.99 with an “elsewhere” price of $8.99, while Fred Meyer sold the same item for $3.99. The lawsuit also cites Tide pods sold at Grocery Outlet for $12.99 with a stated “elsewhere” price of $18.99, but actual nearby competitor prices were $12.99 at Fred Meyer and $12.97 at Walmart.
In all cases, “elsewhere” did not identify a competitor in the same geographic area.
“The case reinforces why Oregonians’ right to consumer-led enforcement is invaluable in the fight against injustices by large corporations,” said Jagjit Nagra, executive director of Oregon Consumer Justice. “While violations of the law, like those alleged in this action against Grocery Outlet, may start as small-dollar scams, in aggregate, they disproportionately strip wealth from the people who can least afford it and make the marketplace less safe for all Oregonians.”
Grocery Outlet is an American discount retailer that sells groceries and other household items at significant discounts, often up to 60% off. The company tends to buy products at discounted prices from suppliers who have excess inventory, packaging changes that mean they can’t be sold at a typical grocery store, or too much of one item was ordered.
KGW reached out to Grocery Outlet for comment but has not heard back. This article will be updated if and when a response is received.
The class action includes Oregon residents who purchased grocery items from any of the listed Grocery Outlet stores in the lawsuit within one year of the filing date when those items were marketed using the “elsewhere” pricing. This may include “well over 100,000” consumers, the lawsuit states.
More than 70 individual Oregon operators running Grocery Outlet locations throughout the state are named in the lawsuit.
