For Immediate Release October 12, 1997 For more information, contact Eli Mantel, +1 650-493-7228
Cagey Consumer, a web site designed to educate the public about fraudulent and deceptive businesses practices, today inducted the Safeway supermarket chain into its Hall of Shame.
According to Cagey Consumer publisher Eli Mantel, Safeway has been heavily promoting an offer promising consumers that they could earn 5% off of their grocery purchases by using their new Safeway Club card to spend at least $250 by Thanksgiving day.
In fact, customers who take advantage of this promotion will be more likely to receive a rebate of between 1% and 2% on the total qualifying grocery purchases made under this program.
That's because the 5% savings calculation omits the $250 in purchases required to qualify for the 5% savings. Thus, a shopper that spends $250 receives the right to receive 5% off a subsequent shopping trip. If the shopper spends $100 on that subsequent shopping trip, the shopper will get a $5 discount. Since the customer will have spent a total of $350, the $5 amounts to only a 1.4% savings, substantially less than the 5% that Safeway promised.