Grocery store accused of overcharging customers
City prosecutors argued in front of a Malibu jury Tuesday that Pavilions on Montana Avenue is guilty of overcharging its customers.
The city rested its case against the Santa Monica grocery store Tuesday afternoon in what is expected to be a two-day trial. Defense attorneys are scheduled to present their case this morning.
The Vons Company, which owns Pavilions, faces six counts of overcharging customers and one count of false advertising. If convicted, it could face more than $20,000 in fines, officials said.
Criminal charges were filed by the consumer affairs unit of the Santa Monica City Attorney’s office after an October 2001 undercover investigation revealed the grocery store was allegedly overcharging customers on sale items. City attorneys claim that Pavilions charged full price at the checkout register for items that were advertised on tags displayed in the aisles as on sale.
“This case is about a big corporation taking advantage of its unsuspecting customers,” said Deputy City Attorney Eda Suh in her opening statements Tuesday.
“This case is about a big corporation taking advantage of its unsuspecting customers.” — — EDA SUH Deputy City Attorney
3A4,“We’re not talking about securities fraud,” she added. “We’re not talking about millions of dollars. We’re talking about small, everyday things that affect you and me.”
Pavilions’ “value plus” cardholders buying Hungry Jack waffles, Taglio Primo brie cheese, Vons-brand spaghetti and three other items were being overcharged by as much as $2.90, said inspectors from the L.A. County weights and measures department.
Vons attorneys didn’t dispute that allegation.
“This is going to be factually a very simple case,” said Vons attorney Stephen Peacock.
Peacock argued that price tags at Pavilions clearly list expiration dates in bold type. Peacock said the 2001 inspection took place one day after the offers in question had expired. Workers were in the process of updating the sale tags, he said.
“We’re dealing with human beings who are pulling these down and putting them up,” Peacock said. “There are going to be mistakes made.”
The Vons Company has faced similar charges in the past.
A Ventura jury recently let Vons of the hook for 16 similar charges and a Santa Monica judge ruled against the city on a 1998 lawsuit brought against Pavilions alleging the same infractions.
Both a Whittier judge and an L.A. county administrative judge have thrown out similar cases on the grounds that the issues have been tried in Vons’ favor in the past.
Despite that history, Malibu Superior Court Judge Lawrence Mira denied an earlier motion by Vons to dismiss the case. He ruled that the alleged violations should be dealt with separately from prior cases.
After lawyers made their opening statements, Suh presented the city’s evidence to the jury of eight women and four men.
Although the overcharges appear small, Suh said the company turns a significant profit on expired labels because of the volume of customers they attract.
Suh called Larry Godwin, the county official who conducted the 2001 investigation, as her only witness. Godwin said he pulled 20 items during his investigation and was overcharged for six of them at the checkout register.
“If there’s a posted or advertised price it’s our job to make sure you get the lowest advertised price,” Godwin said.
“If there’s a posted or advertised price it’s our job to make sure you get the lowest advertised price.” — — LARRY GODWIN County investigator
Jeff Haddox, manager of the Pavilions on Montana Avenue, is the only witness Vons attorneys intend to call, Peacock said.
- Deputy City Attorney Eda Suh
Originally published in the Santa Monica Daily Press print edition on April 30, 2003. Read the original PDF.