Lawsuit Challenges Buy-One, Get-One Deal at Grocers

Consumers have filed a putative class action against Albertson’s Inc.
and Safeway Inc. alleging the companies raise prices on meat during
“buy one get one free” (BOGO) deals, resulting in consumers “actually
paying for the meat that is sold as ‘free’ in these special sales.” Stewart v.
Albertson’s Inc., No. 16-15125 (Ore. Cir. Ct., Multnomah Cty., filed May
4, 2016).

The complaint asserts the stores rotate BOGO offers on a number of
meat products, including pork chops, chicken breast and beef sirloin, but
offer the products at lower prices when they are not on special. Further,
the stores “sell the same meat products at regular [loyalty card] prices
that are lower than the BOGO prices. When they do this, Defendants
sometimes sell the same product under different names.” The plaintiffs
offer an example: “Safeway sold boneless, skinless chicken breasts to
[loyalty card] members for $1.99 per pound. At the same time, Safeway
sold seasoned boneless, skinless chicken breasts for $9.99 per pound in
a Buy 1, Get 2 Free promotion.” In addition, “petite sirloin” is rebranded
as “round tip steak,” “sirloin petite roast” or “beef sirloin petite steak
boneless” when not part of a BOGO offer, the complaint alleges. These
actions amount to alleged violations of Oregon consumer-protection
law, the plaintiffs argue, and they seek class certification, an injunction
and damages.

Issue 604