US Foods CHEF’STORE Resolves Allegations of Price Overcharges and False Advertising

Sonoma County District Attorney Carla Rodriguez announced today that Smart Foodservice Stores LLC, doing business as US Foods CHEF’STORE, entered into a stipulated judgment and will pay $251,293.27 to settle a civil law enforcement complaint that alleged the wholesale grocer engaged in false advertising and unfair competition by charging consumers prices that were not the lowest advertised price or price listed on the shelf. US Foods CHEF’STORE operates 17 stores in California including Sonoma County. Judgment was entered on February 25, 2025, by Judge Jane Gaskell.

The action was filed in Sonoma County Superior Court by DA Rodriguez’s Environmental and Consumer Law Division in conjunction with the District Attorneys of San Francisco, Santa Cruz, and Shasta counties.

“Our Environmental and Consumer Law Division is committed to ensuring businesses charge consumers their lowest advertised or posted price as required by state law,” said District Attorney Rodriguez. “We are grateful for the work Sonoma County Department of Agriculture’s Weights and Measures Division does to protect buyers and sellers by conducting routine inspections to ensure fairness in the marketplace.”

The civil complaint alleged that the wholesale grocery store business unlawfully charged customers prices higher than their lowest advertised or posted price. In addition, the company charged California Redemption Value fee (“CRV”) on products that were not subject to the state fee imposed for recycling certain containers.

The Judgment requires the wholesale grocer to implement a Price Accuracy Program which includes additional store audits and price accuracy procedures in its California stores for a three year period to ensure compliance with pricing accuracy laws. The judgment also requires the grocers to make a payment of $215,000 pursuant to Business & Professions Code 17206 and 17536, $20,000 in cy pres restitution to a non-profit, California Agricultural Commissioners and Sealers Association Quantity Control Trust Fund, and $16,293.27 in costs to the various county Agricultural Commissioners and Sealers around the state who conducted the investigation. US Foods CHEF’STORE cooperated with the investigation and has since instituted new policies and procedures to improve pricing accuracy as a result of the investigation.

Consumers may report overcharging issues to Weights and Measures by calling 707-565-2371 or by e-mailing SonomaAG@sonoma-county.org

Deputy District Attorneys Jessica Washington and Caroline Fowler were the prosecutors for the Sonoma County District Attorney.

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