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Grocer settles with counties

Published 12:00 am PDT Wednesday, June 25, 2008
Story appeared in BUSINESS section, Page D1

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Sacramento County has been awarded more than $400,000 in a settlement with Safeway Inc. over construction violations and pricing inaccuracies.

Safeway, without admitting wrongdoing, agreed to pay $2.7 million to six counties in a consumer-protection case filed earlier this month, Sacramento County District Attorney Jan Scully said Tuesday.

The case, filed in Napa Superior Court, arose from complaints the grocery chain failed to get proper remodeling and hot-food-station permits.

The investigation also looked into pricing and weighing accuracy issues at Safeway stores throughout the state. The case spanned Napa, Fresno, Santa Cruz, Solano, Marin and Sacramento counties.

Sacramento County was awarded $412,493, of which $400,000 will be used by the District Attorney's Office for combating consumer fraud. The remainder will be used to pay investigation costs.

Among other things, Scully's office said Safeway will implement programs to improve pricing and weighing accuracy, including a price guarantee of up to $5 if a consumer is charged a price higher than Safeway's lowest advertised price for an item at the time of purchase.

Safeway did not return calls seeking comment.

– Niesha Lofing


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