Whole Foods is in a world of hurt after the New York City Department of Consumer Affairs revealed in late June that the company was overcharging customers for some of its pre-weighed packages in New York City. [1]
The company’s stock fell more than 30% this year and trading is around $34.50 – the lowest level in nearly four years. Whole Foods’ stock fell another 5% after executives apologized for the pricing snag and promised that it would never happen again.
A Whole Foods shareholder filed a class action lawsuit against the company last week in a federal court in Austin. The investor alleges in the suit that Whole Foods executives made false and misleading statements about its business operations and failed to disclose that it was overcharging customers in a timely fashion, CNN Money reports.
Whole Foods says the complaint is “baseless and without merit.”
But consumers haven’t been terribly forgiving of the price hikes. Whole Foods was slammed with criticism last week by shoppers who noticed that one of the company’s stores in Brentwood, California, was selling asparagus water – a bunch of asparagus stalks in a bottle of water – for $6 apiece. The chain eventually pulled the product from store shelves, but the move was too little, too late. [1]
On Sunday, John Oliver, of HBO’s “Last Week Tonight,” bashed Whole Foods and ridiculed it over the aforementioned asparagus water. The segment ended with a parody ad satirizing the company’s Whole Paycheck reputation for ridiculously expensive food. [1]
Walmart, Costco, and Kroger have started selling cheaper organic food, making them fierce competitors of Whole Foods. In response, Whole Foods is launching a lower-cost chain of stores that’s intended to be “hip, cool and technology-oriented.” [1]
“We’ve been so successful that we’ve actually bred a lot more competition and everyone is jumping on the natural and organic food bandwagon, and that’s really, frankly, due to our success,” said Whole Foods CEO John Mackey. “You have to be willing to evolve with the marketplace…to serve your customers,” he added.
But Mackey’s comments were made in May, a month before New York City Department of Consumer Affairs department commissioner Julie Menin said department inspectors had uncovered “the worst case of mislabeling they have seen in their careers.” [2]
According to New York officials, an investigation of 80 different types of pre-packaged products found none had correct weights; 89% of those packages violated federal rules for how much a package can deviate from actual weight.
The investigators found the following:
- Vegetable platters priced at $20 per package were overpriced by $2.50 on average. One package was overpriced by $6.15.
- Chicken tenders were overpriced by an average $4.13 a package. [3]
- Packages of berries, going for $8.58, were overpriced, on average, by $1.15 a package. [3]
[1] CNN Money
Read more: http://naturalsociety.com/is-whole-foods-really-overcharging-customers-as-claimed/#ixzz3itMV71qt
Replies
Whole Foods was founded in Austin, Texas, and has sold out to the Wall Street establishment. Central Market is a new market that has practically replaced Whole Foods in central Texas with quality non-GMO products, and management at Central Market is getting harassed for refusing to go the Whole Foods way.
LET'S BE REALISTIC PEOPLE: the U.S. government (s)elected wants to kill anyone not contributing heavily to their political campaigns. Also note that Queen Elizabeth II and George H.W. Bush have referred to us as "useless eaters" in the past.
GMO may be currently responsible for the incredible rise in new intestinal diseases seen in hospitals today(such as Crohn's Disease and Irritable Bowel Syndrome) which DIDN'T EXIST 30 YEARS AGO.
Buy local, buy natural, and avoid corporate.
I can get things there that no one else carries.
I also know the right price and if available elsewhere for less will get it elsewhere
An informed consumer knows the correct price..
buy on sale use coupons---I have intelligence and am not extravagant.
I dont have funds to throw away.
They have knowledgeable employees who go out of there way to be helpful.
Every store of that nature makes pricing error.
Caveat Emptor
Buyer be awake and aware.
iF i AM ACCIDENTALLY MISCHARGED THEY GIVE ME THE ITEM FOR FREE.
Even on expensive items like 10 or 12 dollars they honor there scan mistake and will make amends
Yes hey are more expensive on many items...so... dont buy them...Sheesh.
I go to other stores and get similar items if I dont like the price.
and they dont have everything.. but I feel they are more honorable and have more integrity than this publicity seems to lend.
True-- they are trying to make a profit-- isnt every business...?
Thats salesmanship.
When you next go to WholeFoods be extra careful ...don't let them swindle you, rip you or cheat you which now clearly shows that they are good at