A grocery chain that advertises low prices yet adds 10 percent at the cash register didn’t violate any state pricing laws but did have to change its in-store signage to make the practice clear to consumers.
The Colorado Department of Agriculture on Monday said the “shelf + 10%” pricing policy at Avanza grocery stores — there are two in Denver and another in Greeley — did not violate any rules but that the clarity of the store’s signs was “a concern,” state officials said.
“The addition of a 10 percent charge is not a violation of the (Measurement Standards Act that governs pricing) provided that this charge is clearly communicated to customers,” according to an agency memo detailing the findings of its investigation.
The state said in-store signs that declared “A Great Way To Save — Plus 10% at the Register!” could “tend to mislead customers” and ordered new signs.
New signs now clearly read: “A charge of 10% will be added at the cash register.”
Avanza came under fire last month when several consumers filed lawsuits claiming the store’s price policy of advertising low prices and adding a 10 percent premium at the register was “misleading, confusing and deceptive” and tricked consumers into thinking they were getting a good deal.
The owner of Avanza, Minneapolis-based Nash Finch Co., has defended the practice, saying it is not misleading.
“Shelf-Plus pricing is well- accepted by our customers,” company spokesman Brian Numainville has said. “The pricing strategy … is not novel.”
The lawsuits, filed in Denver and Adams county district courts by attorney Craig Silverman, are pending.
“Our many clients were victimized, and we are pleased that the Colorado Department of Agriculture investigation and findings support our claims,” Silverman said.
The agriculture department tested cash registers at all three Avanza stores to ensure prices rang up as advertised on the shelf. The Greeley store was the only one to fail the test. It was fined $100.
