According to Reuters, Whole Foods Market, Inc. (NASDAQ: WFM) is under scrutiny by a federal appeals court as the company was ordered to face a proposed class-action lawsuit that accuses Whole Foods of overcharging shoppers in New York City by overstating the weight of pre-packaged foods in its supermarkets.
Previously, the 2nd U.S. Circuit Court of Appeals in Manhattan stated that a lower court judge had made an error in his conclusion that Sean John, the plaintiff, a customer of whole food’s pre-packaged cheese and cupcakes had no right to sue because he could not prove that Whole Foods overcharged him for a specific purchase. One month after the New York City’s Department of Consumer Affairs in June 2015, John had sued claiming that all 80 prepackaged foods tested from Whole Foods had mislabeled weights, where 89 percent failed to meet federal labeling standards. Overcharged prices ranged from 80 cents for pecan panko to $14.84 for coconut shrimp.
Whole Foods had agreed to pay $500,000 to settle with New York City back in December as the co-chief executives, Walter Robb and John Mackey issued apologies.
"According to the DCA's investigation, Whole Foods packages of cheese and cupcakes were systematically and routinely mislabeled and overpriced, and John regularly purchased Whole Foods packages of cheese and cupcakes throughout the relevant period", Circuit Judge Raymond Lohier said. "Taking these allegations as true and drawing all reasonable inferences in his favor, it is plausible that John overpaid for at least one product," the judge added.