Settlement: Ralphs Grocery Stores to Pay for Shorting Customers

The chain will pay nearly $290,000 for violations in Riverside County

Ralphs grocery stores have incorrectly charged Southland customers and filled containers with less product than advertised, according to a Riverside County court judgment against the supermarket chain.

After a consumer complaint, state and local investigators found that Ralphs had in 2009 sold under-filled containers of frozen desserts made by its parent company, Ohio-based Kroger Co., by 6 to 15 percent. Six flavors of frozen dairy dessert were ordered removed from shelves.

Then, in 2010, investigators found that Ralphs was not accurately stating unit prices, which allow customers to compare products across brand based on per-ounce pricing, for example.

Ralphs Grocery Co. agreed in a civil court settlement to pay about $290,000, according to statement from the Riverside County District Attorney’s Office Tuesday.

A Riverside County judge last week also ordered all Ralphs and its Food 4 Less stores in the county to hire a “pricing integrity coordinator” to verify accuracy in price labeling.

The judge ordered payments of $102,000 for the frozen dessert sales and about $88,000 for the inaccurate unit pricing, Riverside County District Attorney Paul Zellerbach’s office said in a press release. The company also had to pay $50,000 for the cost of the investigation.

Zellerbach’s statement said that because it would be difficult for Ralphs to identify and repay affected customers, the judge ordered the company to pay $50,000 to the Second Harvest Food Bank.

"We've changed the way Kroger and Ralphs do business right now and that's the important thing," said Elise Farrell, Riverside County Deputy District Attorney.

The judgment, filed with the court by Judge Gloria Trask on April 27, covers all 30 Ralphs and Food 4 Less stores in Riverside County.

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Ralphs spokeswoman Kendra Doyel said in a statement that the company made a “business decision” to resolve the situation through the settlement. The company and its employees “are committed to complying with all laws, and we take our responsibility to our customers very seriously,” she said.

The company, founded in 1873 and headquartered in Los Angeles, operates about 245 supermarkets.

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