A class action lawsuit The lawsuit claims Grocery Outlet used inflated comparison prices, misleading customers about actual deals
of ConsumerAffairs- Oregon consumers have filed a class-action lawsuit against Grocery Outlet, alleging the chain violates state law by promoting prices as lower than "elsewhere" without identifying specific competitors.
- The lawsuit claims Grocery Outlet used inflated comparison prices and promoted savings on items not available at other stores, misleading customers about actual deals.
- Oregon law requires businesses making price comparisons to identify competitors and ensure products are available in the same geographic area.
A group of Oregon consumers has filed a class-action lawsuit against discount grocery chain Grocery Outlet, alleging the company engaged in deceptive pricing practices that violate state consumer protection laws.
The lawsuit, filed this week in Multnomah County Circuit Court, accuses Grocery Outlet of promoting its prices as being lower than those found "elsewhere" without specifying where those higher prices can actually be found. The legal action was brought by a law firm affiliated with Oregon Consumer Justice, a nonprofit organization, on behalf of three local consumers.
Legal violations alleged
The suit alleges that Grocery Outlet's price comparison practices violate multiple provisions of Oregon's Unlawful Trade Practice Act. Under Oregon state law, businesses that use price comparisons to promote their products must identify the specific competitor they are comparing their prices with, and the product must be offered within the same geographic area.
The lawsuit names not only Grocery Outlet itself but also 66 independent owner-operators of Grocery Outlet stores throughout the state.
Specific examples of alleged deception
The legal filing details several instances where Grocery Outlet allegedly misled consumers through its pricing practices:
- Unavailable Products: In one case, the retailer promoted three frozen, gluten-free items as being priced lower than "elsewhere," when those specific products were not actually available anywhere else in the state.
- Inflated Comparison Prices: The suit claims Grocery Outlet cited inflated prices from competitors. For example, the company promoted its $3.19 price for an oat milk product as being less than the $4.99 price found "elsewhere," when a nearby Fred Meyer store actually offered the same product for $1.99.
- Misleading Percentage Savings: The lawsuit also challenges Grocery Outlet's use of language such as "save 46%" on certain items, claiming these comparisons sometimes refer to fictitious prices purportedly offered at other stores rather than actual discounts from Grocery Outlet's regular prices.
Impact on consumers
"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.
Jagjit Nagra, executive director of Oregon Consumer Justice, said in a statement: "This class action is about doing right by consumers impacted by Grocery Outlet and holding the company accountable for their unethical and duplicitous pricing scheme that shuts down consumer choice."
Legal remedies sought
The plaintiffs are seeking unspecified "equitable relief" as well as recovery of interest, attorneys' fees, and costs. The lawsuit indicates that the plaintiffs plan to amend their filing to specify monetary damages at a later date.
This lawsuit against Grocery Outlet is part of a growing trend of legal challenges to grocery retailers' pricing practices. Similar class-action suits have been filed against major chains including Albertsons, Publix, and Walmart. Additionally, a Consumer Reports investigation has alleged pricing discrepancies at Kroger stores.
Posted: 2025-06-11 12:49:33
