A class action lawsuit filed on June 2 in Multnomah County Circuit Court accuses Grocery Outlet and dozens of its affiliated store operators in Oregon of deceptive pricing practices that violate state consumer protection laws. The plaintiffs allege that the retailer used fabricated "elsewhere" prices to create the illusion of savings, misleading customers into thinking they were getting better deals than were available.
The lawsuit, brought by Oregon residents Schearon Stewart, John Franz, and Roger Sullivan, claims that Grocery Outlet promoted products using reference prices that were either inflated, unverifiable, or entirely fictitious. These prices were presented as what the same product would cost "elsewhere," but without identifying the competing retailer or confirming that the item was even sold in the same geographic area. In several examples cited in the complaint, the supposed "elsewhere" price was significantly higher than prices at nearby stores.
Oregon law prohibits the use of reference pricing unless the seller identifies the competitor and confirms that the comparison is accurate and geographically relevant. The state also restricts the use of discount language like "percent off" unless it reflects a reduction from the seller’s prior price. According to the complaint, Grocery Outlet routinely violated these rules through signage, shelf tags, and weekly advertisements that claimed savings based on false or misleading comparisons.
The suit names Grocery Outlet Inc., based in California, along with 66 individual owner-operators across the state of Oregon. The plaintiffs are seeking equitable relief to stop the pricing strategy, restitution for consumers, and recovery of attorney fees. They plan to amend the complaint to include claims for monetary damages once the required notice period expires.
The case, Stewart, Franz, and Sullivan v. Grocery Outlet et al., highlights ongoing scrutiny of pricing practices in the retail industry. Similar lawsuits have been filed in recent years against major grocery chains, including Albertsons, Publix, and Walmart.
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