A national grocery chain that operates supermarkets in Colorado aimed at Latino customers admitted Friday it violated the state’s Consumer Protection Act and committed theft by charging prices higher than listed on store shelves.
At issue was a practice by Nash Finch Co. at its Avanza Supermarkets in which customers were charged 10 percent more than the tags on store shelves stated.
Late Friday, attorneys for Nash Finch filed a “confession of judgment” in Adams County District Court in which the grocery chain admitted “liability and confesses and agrees to the entry of judgment in favor of plaintiffs.”
The filing averted a trial that was scheduled to begin at 9 a.m. Monday involving six Avanza customers who alleged they were victims of the pricing scheme.
The move also came after a failed last-minute effort to get the Colorado Supreme Court to delay Monday’s trial.
Janet Savage, an attorney for Nash Finch, could not be reached late Friday afternoon for comment.
“Nash Finch fought us tooth and nail for two years as we represented Avanza customers,” said Craig Silverman, one of three attorneys representing Avanza customers. “We were ready for trial on Monday.”
Nash Finch, which has its company headquarters in Minnesota, operates grocery stores and food-distribution centers around the country.
According to the company’s website, it is the second-largest publicly traded wholesale-food distributor in the country.
In addition to four Avanza Supermarkets in Colorado, it operates Sun Mart Foods in Sterling.
Although Friday’s filing requires the company to pay each of the six customers $700, it also will have to pay “reasonable” attorneys’ fees and costs.
According to court documents, the six customers alleged that the store routinely listed one price on the shelves but then charged customers another at the checkout stand.
The customers accused Avanza of deceptive trade practices and theft.
