San Francisco, CA – San Francisco District Attorney Brooke Jenkins announced today that Smart Foodservice Stores LLC, doing business as US Foods CHEF’STORE, will pay $251,293.27 to settle allegations that the wholesale grocery chain was charging prices that were higher than the lowest advertised or posted price.

“California customers should never be charged more than the lowest amount listed on the advertisement, price tag, or shelf,” said District Attorney Brooke Jenkins. “I want to thank the weights and measures inspectors at the San Francisco Department of Public Health for their work on this matter. My office won’t hesitate to act whenever unlawful price discrepancies are called to our attention.”

The civil complaint, filed in Sonoma County Superior Court, also alleged that the company charged a California recycling fee (the California Redemption Value or “CRV”) on products that were not subject to the fee. The Defendant operates 17 stores in California including San Francisco. The action was pursued jointly with the District Attorneys of Sonoma, Santa Cruz, and Shasta counties.

CHEF’STORE cooperated with the investigation and instituted new procedures to reduce future problems. For example, the Judgment requires the company to implement a Price Accuracy Program which includes additional store audits and price accuracy procedures for the next three years. Without admitting liability, the defendant agreed to pay: $215,000 pursuant to Business & Professions Code sections 17206 and 17536; $20,000 to support future enforcement of consumer protection laws; and $16,293.27 in cost reimbursement to the various agencies around the state who conducted investigations.

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