Press Release
FOR IMMEDIATE RELEASE
Date: 07/07/03

Contact person(s):

Media Coordinator, Donna Edwards - 565-3099 Media Spokesperson, Chief Deputy Larry Scoufos Deputy District Attorney: Dani Jo Handell Safeway Representative: Alexander Winslow - (925) 467-2057

Santa Rosa, Sonoma County, California

SAFEWAY WILL PAY $1.5 MILLION IN PENALTIES TO SETTLE
CALIFORNIA DISTRICT ATTORNEY’S CONSUMER PROTECTION LAWSUIT

Sonoma County District Attorney Stephan Passalacqua announced today a civil settlement has been reached with Safeway Corporation. The settlement involves a consumer protection lawsuit alleging the company engaged in misleading advertising and unfair competition in its California stores. The lawsuit, filed in the Sonoma County Superior Court, was joined by Marin and Shasta Counties.

Under the terms of the agreement, Safeway will pay $1.5 million in civil penalties and will be required to correct its advertising. Safeway will, also, contribute funds to improve consumer protection efforts and to enforce the accuracy of check out scanners in all retail businesses. The lawsuit alleged that Safeway made misleading statements concerning some of its “Buy One, Get One Free” advertisements. The promotions which gave rise to the lawsuit involved groups of similar type items, such as cereals, frozen dinners, or canned goods.

“Consumers have a legitimate expectation that an advertised sale item will be accurately priced,” said District Attorney Passalacqua. In addition, Passalacqua commented, “we believe the settlement in this case sends a message that will help ensure that consumer expectations are met.” He, also, acknowledged the enforcement efforts of Sonoma County Weights and Measures officials, and the efforts of Sonoma County Deputy District Attorney Dani Jo Handell, Investigator Jim Shrum, Marin County Deputy District Attorney Robert Nichols, and Shasta County Deputy District Attorney Matt Stegman.

The settlement was a result of an investigation started by the Environmental and Consumer Law Division of the Sonoma County District Attorney’s Office. The lawsuit was later joined by Marin County District Attorney Paula Kamena and Shasta County District Attorney Gerald Benito. John Westoby, Agricultural Commissioner and Sealer for Sonoma County, said “It is important that consumers are not overcharged for their purchases. We have a history of effective and vigorous enforcement action with the District Attorney’s Consumer Protection Unit and are pleased that these investigations and prosecutions are working to assure that all businesses comply with pricing and advertising regulation.”

Safeway agreed to the settlement without admitting any wrongdoing.