Kroger grocery chain accused of overcharging AZ customers

(The Center Square) — U.S. Sen. Ruben Gallego, D-Arizona, wants answers from Kroger after an investigation found the grocery chain was allegedly overcharging customers.

The allegation was first made by Consumer Reports, The Guardian and Food & Environment Reporting. The claim is that 14 states had expired discount sale tags, and Kroger reportedly charged more than the price on the tags at the checkout registers.

Arizona was one of those 14 states. According to Gallego, this practice by Kroger was occurring on more than 150 items, “producing average overcharges of about $1.70 per item, an average 18% markup over the discount price consumers were expecting to pay.”

Neither Gallego nor Kroger responded to The Center Square’s request for comment. But in a letter to Kroger CEO Ronald Sargent, Gallego wrote that “unexpected food price increases can cause significant strain on family budgets,” especially at a time in which many families are paying more for a variety of essential items and services.

“We write to urge you to create a plan with union partners to prevent overcharging from occurring in the future, compensate consumers who have been overcharged, and ensure sufficient staffing at stores to prevent overcharging,” wrote Gallego.

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The first-term senator went on to write that this is not the first report of “questionable consumer practices” at Kroger.

For example, Gallego wrote that it was reported in October 2024 that Kroger tested facial recognition software and is increasing the use of digital price tags, something he warned can facilitate surge pricing.

“These practices could be used to manipulate consumers into paying more than they otherwise would at the store,” the senator wrote.

According to Consumer Reports, Kroger downplayed the situation.

“While any error is unacceptable, the characterization of widespread pricing concerns is patently false,” the company told Consumer Reports.

Gallego is not the only Arizonan concerned about the prices of foods and other goods.

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In May, Attorney General Kris Mayes, D-Arizona, secured a consent judgment against Family Dollar Stores LLC.

Working through the Consumer Protection and Advocacy Section of her office, Mayes said Family Dollar Stores “inaccurately” advertised prices of store items.

“Inaccurately advertising pricing is simply unacceptable,” said Mayes.

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