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041172 Kroger Sued For Overcharging on Meat

November 26, 2004

Seattle, WA - An employee and two customers of a Kroger Co. food division in Seattle filed a lawsuit this week alleging the chain has for years illegally overcharged meat customers by "tiny amounts."

The suit, filed in King County Superior Court, argues that Portland, Ore.-based Fred Meyer charged customers for some of the packaging of its meat products. While the extra cost averaged about 16 cents per package, the lawsuit claims the total annual cost to customers is more than $1 million. The suit seeks class-action status.

Fred Meyer said in a statement that it enforces strict guidelines to ensure per- pound prices are "accurate, fair and consistent."

"We are committed to 100% price accuracy for our customers." The company said it was reviewing the matter.

Plaintiffs include Fred Meyer employee David Galego, and King County customers Robin Alexander and Cathy Wiseman. Galego, who worked at an Oregon Fred Meyer, had previously been the subject of a state regulators' investigation of overcharging.

A Fred Meyer employee accused Galego in 2001 of improperly charging for packaging, a spokesman for the Oregon Department of Agriculture said. Galego's attorney said he had accidentally mis-entered weight information.

In his following effort to learn how store computers determined package weights, Galego surmised that Fred Meyer was overcharging. He told his supervisors, but felt his complaints were being ignored.

Cincinnati-based Kroger is one of the nation's largest supermarket operators, with more than 2,500 stores operating under 24 names in 32 states.

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