One of the nation’s largest grocers is under fire for allegedly inflating prices ahead of its “buy one get one free” promotions, garnering nearly $20 million in the process.
Washington State Attorney General Nick Brown on April 27 announced that his office is suing Albertsons Companies for overcharging customers through what Brown’s office calls “deceptive” buy-one-get-one-free, or BOGO, promotions.
According to the complaint, Albertsons stores — which in Washington includes its namesake brand, as well as Safeway and Haggen — raked in upwards of $19.7 million across 3 million transactions. The price hikes allegedly occurred from October 2019 to May 2024.
Price Hikes Precede Promotions, AG Alleges
In the alleged scheme, the complaint states, stores would “artificially hike prices” on everything from bread and cereals to produce and olive oil in the weeks or months preceding a BOGO promotion. They would then lower the prices within 30 days of the promotion’s end, effectively offsetting any potential savings for consumers.
“We’re not going to stand for people getting fleeced by these deceptive practices,” Brown said in a statement. “That’s why we’ve filed this case.”
The complaint, filed in King County Superior Court, details several examples.
In 2023, an Albertsons in southern Washington raised the price of hoagie rolls by 27%, from $3.39 to $4.29, one day before a BOGO deal was announced. When that promotion ended, the price dipped to $2.49.
Meanwhile, in 2021, a Safeway near the state’s northern border inflated the price of a mini watermelon from $3.99 to $5.99 two days before a BOGO promotion began. When it ended, the watermelon was priced at $3.99 again.
The most drastic example cited in the complaint involved a jar of olives sold at a suburban Albertsons roughly 12 miles outside Seattle. Two days before a BOGO promotion was announced, the store raised the price of the jar by 84%, from $2.99 to $5.49, before pricing it back at $2.99 once the promotion ended.
Brown’s office is requesting that the court determine Albertsons Companies’ conduct violates state law, that the company put an end to its “use of unfair and deceptive BOGO promotions,” reimburse affected consumers in the state, and pay civil penalties and pre-judgment interest.
AG’s Claims Based on ‘Flawed Analysis and Data,’ Albertsons Says
In a statement shared with USA TODAY, Albertsons Companies said it “strongly disagrees” with the claims in the complaint, adding they are “based on flawed analysis and data errors that we identified and raised” with the AG’s office.
“Albertsons Companies is committed to complying with the law and to offering customers clear value through our promotions. As this is pending litigation, we will address the matter through the legal process and cannot comment further,” the company said.
As one of the nation’s largest grocers, Albertsons Companies’ portfolio includes more than 2,200 stores operating under more than 20 regional banners across 34 states and Washington, D.C.
A History of Albertsons Companies’ BOGO Settlements
While Albertsons Companies denies 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, plus another $107 million to settle a 2023 federal court case concerning BOGO promotions in Washington.
“We want to make sure we’re protecting people’s pocketbooks, and we all know that affordability is a major issue these days,” Brown said. “We’ve got to push back when companies are misleading their customers.”
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