(Update: Adding video, interview with Oregon Consumer Justice)
BEND, Ore. (KTVZ) — Grocery Outlet, which calls itself the ‘Bargain Market’, is alleged to be without true bargains, according to three Oregon consumers who filed a class-action lawsuit over its price-comparison practices.
The plaintiffs – represented by OJC Law, P.C., partners of Oregon Consumer Justice – have brought a class-action lawsuit against Grocery Outlet and operators of over 60 locations throughout Oregon over what they allege is deceptive marketing.
The complaint (which you can review below) demands equitable and injunctive relief, along with a jury trial, claiming violations under the Unlawful Trade Practices Act.
The focus of the claims is the “widespread and coordinated scheme by Grocery Outlet Inc. and its affiliated Oregon operators to mislead consumers through the use of fictitious ‘elsewhere’ pricing,” according to the lawsuit.
Receipts and specific product price comparisons between nearby stores and Grocery Outlet were provided in the complaint as examples to show that Grocery Outlet actually charges more than its competitors.
Oregon Consumer Justice told KTVZ News it is not just cost discrepancy, but quality that skews realistic comparison.
Jagjit Nagra, the executive director of Oregon Consumer Justice, told KTVZ News, “Let’s assume for the sake of this hypothetical that Grocery Outlet does in fact offer a lower price than Safeway down the street. But the item from Grocery Outlet is going to expire next week, whereas the item from Safeway has a shelf life for another year. That’s not an apples-to-apples comparison. And that is very misleading for consumers.”
The term ‘elsewhere’ is clearly defined in Oregon under consumer statute, with strict rules on when businesses are allowed to use the word in comparisons and marketing.
The suit requests injunctive relief – or, stopping the behavior – and monetary damages.
We have reached out to the Grocery Outlet store owners here in Central Oregon for comment, but have not yet received a response.
We will continue to monitor the situation and provide you with any new information we receive.
Here is the lawsuit:
