FILE - Branding for Albertsons grocery store is seen on a shopping cart on Monday, Aug. 26, 2024, in Lake Oswego, Ore. Washington is suing the company for what it calls "deceptive" buy one, get one free sales.
Jenny Kane / AP
Washington state on Monday sued Albertsons over allegations it has been overcharging customers for years via buy one, get one free offers.
Attorney General Nick Brown claims Albertsons, which also runs Safeway and Haggen stores, overcharged customers on at least 3.1 million transactions under this scheme between October 2019 and May 2024, bringing in at least $19.6 million from those purchases.
The lawsuit, filed in King County Superior Court, says Albertsons artificially raises the prices of items like bread, produce and olive oil in the weeks or months before a buy one, get one, or BOGO, offer. It then lowers the prices within a month of the promotion.
The complaint argues customers pay a premium on the first product, which covers a portion of the cost of the “free” one. The lawsuit comes after a monthslong investigation, Brown said.
“Washington consumers are already burdened by affordability issues, and we’re not going to stand by and let them get fleeced by deceptive marketing,” Brown said in a press conference.
Albertsons said in a statement that the company is aware of the lawsuit.
“We engaged in good‑faith discussions with the Attorney General’s Office and strongly disagree with its claims, which are based on flawed analysis and data errors that we identified and raised,” the company said.
“Albertsons Companies is committed to complying with the law and to offering customers clear value through our promotions,” the statement continued. “As this is pending litigation, we will address the matter through the legal process and cannot comment further.”
In 2021, the lawsuit says, Oroweat Premium Italian Bread at an Albertsons in Tacoma cost $3.69. But the store raised the price to $4.29, about 16%, around the time of a BOGO offer on the bread, according to the lawsuit. After the deal passed, it dropped the price to $4.17.
Other increases included 50% for mini watermelon at Safeway in Colville, 57% for olive oil at a Gig Harbor Albertsons and 84% for pimiento-stuffed olives at an Albertsons in Renton.
This isn’t the first time this issue has been called out.
In Oregon, Albertsons paid $107 million to settle a 2016 class-action lawsuit over similar allegations. In that case, eligible customers could each receive up to $200.
And in 2024, Albertsons settled with Washington consumers who brought their own lawsuit against the company. The terms of the settlement weren’t disclosed.
The state’s lawsuit alleges Albertsons is violating safeguards in the state’s Consumer Protection Act against unfair and deceptive practices.
Brown is asking a judge to order Albertsons to end its buy one, get one practices, provide restitution to customers and pay civil penalties with interest.
Albertsons, based in Boise, Idaho, has 225 stores in Washington, according to the attorney general’s office.
Washington has previously gone to court with the grocery giant to block its merger with Kroger out of anti-competitive concerns. In response to the lawsuit filed by then-Attorney General Bob Ferguson, a King County judge ruled the merger violated state consumer protection laws and halted it. A federal judge similarly blocked it, after the Federal Trade Commission sued.
Brown pointed out this new lawsuit comes as the Trump administration has “gutted” federal consumer protection efforts. And grocery prices are on the rise.
“This is something that everyone is facing, something that I face, trying to decide what products and food to buy for your family feels more important than ever before,” he said.
State lawmakers this year proposed legislation to temporarily ban electronic pricing systems at retailers and prohibit surveillance or algorithmic surge pricing. The bill didn’t pass the Legislature, but its sponsor has said she plans to try again in 2027.
Brown said his office has been “paying a lot of attention” to this issue, and eyeing whether companies are tailoring prices to customers based on personal data.
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