One of the nation’s largest grocers is coming under fire for allegedly raising prices ahead of its “buy one get one free” promotion, raking in nearly $20 million in the process.
Washington State Attorney General Nick Brown announced on April 27 that his office is suing Albertsons Companies for overcharging customers for what Brown’s office calls a “deceptive” buy-one-get-one-free, or BOGO, promotion.
According to the complaint, Albertsons stores — which include its namesake brand in Washington, as well as Safeway and Haagen — made more than $19.7 million in 3 million transactions. The price hike reportedly occurred between October 2019 and May 2024.
AG alleges that prices have increased before promotion
In the alleged scheme, the complaint says, stores would “artificially raise prices” on everything from bread and cereal to produce and olive oil in the weeks or months before the BOGO promotion. They will then reduce prices within 30 days after the promotion ends, effectively offsetting any potential savings for consumers.
“We will not stand by people fleeing these deceptive practices,” Brown said in a statement. “That’s why we have filed this case.”
Several instances are detailed in the complaint filed in King County Superior Court.
In 2023, the day before the BOGO deal was announced, Albertsons in Southern Washington raised the price of hoagie rolls by 27% from $3.39 to $4.29. When that promotion ended, the price dropped to $2.49.
Meanwhile, in 2021, a Safeway near the state’s northern border raised the price of a mini watermelon from $3.99 to $5.99 two days before the BOGO promotion began. When it ended, the price of watermelon went back up to $3.99.
The most egregious example cited in the complaint involved a jar of olives sold at a suburban Albertsons about 12 miles from Seattle. Two days before the BOGO promotion was announced, the store raised the price of the jar by 84% from $2.99 to $5.49, dropping the price back to $2.99 after the promotion ended.
Brown’s office is requesting that the court determine that Albertsons Co.’s conduct violates state law, that the company end its “unfair and deceptive use of BOGO promotions,” reimburse affected consumers in the state, and pay civil penalties and pre-judgment interest.
Albertsons says AG’s claims based on ‘flawed analysis and data’
In a statement shared with USA TODAY, Albertsons Companies said it “strongly disagrees” with the claims made in the complaint, adding that they are “based on flawed analysis and data errors that we identified and raised with the AG’s office”.
The company said, “Albertsons Co. is committed to complying with the law and providing customers with clear value through our promotions. As this litigation is pending, we will address the matter through the legal process and cannot comment further.”
As one of the nation’s largest grocers, Albertsons Companies’ portfolio includes more than 2,200 stores operated under more than 20 regional banners in 34 states and Washington, DC.
History of Albertsons Companies’ BOGO Settlements
While Albertsons Companies has denied the allegations, it has settled two class-action lawsuits in the past.
In 2016, Albertsons paid $107 million to settle a BOGO promotion case in nearby Oregon, as well as another $107 million to settle a 2023 federal court case related to a BOGO promotion in Washington.
“We want to make sure we’re protecting people’s pocketbooks, and we all know affordability is a major issue these days,” Brown said. “When companies are misleading their customers we have to push back.”