LA HABRA, Calif. -- In a move that could have far-reaching implications concerning supermarket advertising, Food 4 Less Supermarkets here is seeking to bar Lucky Stores from calling itself the "low-price leader" and "low-price leader every day" in its advertising.
In an amended complaint filed in Superior Court here last week, Food 4 Less charged that Lucky, based in Dublin, Calif., "at all relevant times knew that Food 4 Less has lower prices than Lucky Stores in California."
Food 4 Less operates 28 warehouse stores in southern California, while Lucky operates 239 conventional supermarkets in the area. Lucky, a division of American Stores Co., Salt Lake City, typically runs ads comparing its prices to those at other conventional chains.
Industry observers said a court victory by Food 4 Less could change the way supermarket operators deal with competitive advertising claims by giving them the possibility of turning to the courts for relief.
The original lawsuit, charging Lucky Stores with false and misleading advertising and anti-competitive practices, was filed in March. The amended complaint was scheduled to be filed late last week. In that complaint, Food 4 Less asked for a permanent injunction "restraining and enjoining (Lucky) from continuing the acts of unfair competition."
While the lawsuit is pending, Food 4 Less is also seeking a preliminary injunction.
The amended complaint also asks that Lucky Stores be ordered to restore to Food 4 Less "all funds acquired by the acts of unfair competition," which it estimates at "no less than the sum of $100 million" on each of two counts, or $200 million.
At the time of the original filing, Judie Decker, communications manager at Lucky Stores, told SN, "We believe we have adequate documentation to substantiate our [low-price] claims."
