Safeway reaches settlement over alleged price gouging of hand sanitizer during COVID-19 crisis

SAN FRANCISCO -- Safeway has reached a settlement with the Alameda and Contra Costa district attorney's offices following alleged price gouging for hand sanitizer, prosecutors said Tuesday.

The company will pay about $81,000 in civil penalties and about $62,000 in restitution for the alleged gouging that began after the pandemic started. Safeway did not admit any wrongdoing and cooperated in the investigation.

RELATED: Coronavirus outbreak leading to illegal price-gouging, California AG warns

Prosecutors said that Safeway marked up two brands of hand sanitizer by 50% over their wholesale cost, which is prohibited by an April 2020 emergency order issued by Gov. Gavin Newsom.

Customers were allegedly paying $5.99 for Raff Distillerie hand sanitizer and $9.99 for Ocean Fresh hand sanitizer, the complaint says. According to prosecutors, the prices were $.47 and $1.01 over the legally acceptable prices for the goods. Prosecutors began their investigation following a complaint by a citizen over the prices.

RELATED: Coronavirus News: Sellers accused of price gouging amid sanitizer shortage

As part of the judgement, Safeway must abide by California laws. Albertsons Companies, which owns Safeway, did not immediately respond to a request for comment on the case.

App users: For a better experience, click here to view the story in a new window

If you have a question or comment about the coronavirus pandemic, submit yours via the form below or here.

Get the latest news, information and videos about the novel coronavirus pandemic here

RELATED STORIES & VIDEOS:

• Map: CA counties that can, can't reopen under new rules
• Updated number of COVID-19 deaths, cases in Bay Area
• COVID-19 Help: Comprehensive list of resources, information
• California EDD: The most commonly asked questions we get about unemployment and PUA
• How to tell the difference between seasonal allergies and coronavirus symptoms
• Here's which mask is better to protect from COVID-19
• First COVID-19 vaccine volunteers in US describe experience as Bay Area launches vaccine trials
• From salons to dinner parties: Experts rate the risk of 12 activities
• Coronavirus origin: Where did COVID-19 come from?
• What is a COVID-19 genetic, antigen and antibody test?
• What will it take to get a COVID-19 vaccine and how will it be made?
• What does COVID-19 do to your body and why does it spread so easily?
• Here's how shelter in place, stay at home orders can slow spread of COVID-19
• Coronavirus Timeline: Tracking major moments of COVID-19 pandemic in San Francisco Bay Area
• COVID-19 Diaries: Personal stories of Bay Area residents during novel coronavirus pandemic
• Coronavirus Doctor's Note: Dr. Alok Patel gives his insight into COVID-19 pandemic