Albertsons will pay millions to quash charges that it cheated customers. Shouldn't that kill its merger plan?

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Albertsons is paying $3.9 million to settle a federal-state lawsuit that accused it of ripping off shoppers. What does that tell us about its promise that its big merger will lead to lower prices?

A couple of legal events involving the giant supermarket chain Albertsons — the owner of Vons and Pavilions, among other familiar brands — and the giant chain Kroger, owner of Ralphs and other big supermarket names, are coming together just as the two firms are trying to finalize their $24.6-billion merger.

The companies have said that the merger is necessary to enable them to compete with nontraditional grocery stores such as Walmart, Costco and Amazon; the FTC says those other stores aren't direct competitors of Albertsons and Kroger. The agency has said explicitly that the two companies' promises of lower prices post-merger — and higher wages for the workers who don't lose their jobs in the process — aren't worth the breeze they waft in on.

 

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