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Lawsuit Filed Against Grocery Outlet Accusing Deception in Pricing Strategies

Lawsuit alleges unrealistic "elsewhere" pricing scheme

Grocery Outlet Faces Lawsuit for Alleged Misleading Pricing Practices
Grocery Outlet Faces Lawsuit for Alleged Misleading Pricing Practices

Lawsuit Filed Against Grocery Outlet Accusing Deception in Pricing Strategies

In a recent development, a class action lawsuit has been filed against Grocery Outlet in Oregon's Multnomah County Circuit Court. The lawsuit, spearheaded by OCJ Law P.C., along with co-counsel, accuses the retailer of engaging in a deceptive sales strategy involving inflated or fictitious reference prices.

The complaint alleges that Grocery Outlet has been marketing and selling products through a "coordinated scheme of fake savings and made-up reference prices," often vaguely attributed to "Elsewhere" without clearly identifying the competitor whose prices were being compared. This practice, it is claimed, violates Oregon's Unlawful Trade Practices Act.

The lawsuit provides photo evidence from recent transactions, demonstrating Grocery Outlet's practice of displaying fabricated price comparisons. In some instances, the prices either don't correspond with other products sold regionally or are intentionally inflated to give the illusion of better in-store deals. As a result, customers shopping at Grocery Outlet's "bargain market" reportedly paid about the same or even slightly more than they would have at other stores.

Stewart, Franz, and Sullivan v. Grocery Outlet, et al. aims to halt these alleged deceptive practices. The case seeks to end these misleading pricing strategies by Grocery Outlet and ensure transparency in the pricing of products.

Based in Emeryville, California, Grocery Outlet operates through a network of independently owned stores at more than 520 locations in multiple states. The company ranks No. 65 on Progressive Grocer's 2025 list of top food and consumables retailers in North America.

This is not the first time the grocery industry has been under scrutiny. Recent reports have highlighted concerns about rising prices, inflation, and tariffs, while Mondelez has accused ALDI of copying its snack packaging. The Feedback Group, meanwhile, offers consumer insights on the impact of these factors on shoppers.

As the legal proceedings unfold, it remains to be seen how this case will impact Grocery Outlet and the broader grocery industry. Shoppers, however, are encouraged to stay vigilant and make informed decisions when it comes to their purchases.

  1. The allegations against Grocery Outlet, if proven true, could potentially tarnish the company's reputation within the retail industry and business world, especially in the finance sector, where transparency and honesty are crucial.
  2. This lawsuit against Grocery Outlet in Oregon, according to the complaint, not only impacts the retail sector but also raises questions about honesty in pricing practices across the entire grocery industry.

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