Marketing Daily reports that Safeway and its parent company Albertsons have agreed to write a $107 million check to settle a lawsuit charging that stores in Oregon deceptively inflated meat prices before launching a buy-one-get-one (BOGO) promotion.
According to the story, "In a suit filed May 2016, Oregon residents and Safeway shoppers Schearon Stewart and Jason Stewart alleged that Safeway inflated the regular purchase price of meat in order to pass along the cost of the supposedly 'free' items to its Club Card members.
"The plaintiffs claimed that Safeway had violated the Oregon Unlawful Trade Practices Act in BOGO promotions involving beef, chicken and pork by making 'false or misleading representations of fact concerning the reasons for, existence of, or amounts of price reductions.'
"In some instances, Safeway added 'de minimis' services like seasoning or cutting that typically would have been free to Club Card members, according to the suit."
Marketing Daily writes that "Safeway and Albertsons will pay $107 million into a settlement fund to benefit shoppers who participated in Buy One, Get One Free or Buy One, Get Two Free promotions at Safeway locations in Oregon using a Club Card between May 4, 2015 and Sept. 7, 2016.
"The estimated payment for each person who qualifies as a class-action member is $200."
- KC's View:
The irony, of course, is that theoretically, Club Card holders are supposed to be the retailer's best customers - you know, the ones who are supposed to get the best deals, preferential treatment. The ones to whom a retailer should be most loyal.
Guess they didn't get that memo.