PHOENIX (AP) – Arizona-owned Bashas' Inc. is admitting that it overcharged customers by mislabeling steaks and beef at its AJ's Fine Foods stores. The Arizona Republic reports (http://bit.ly/1cqaWMI) that U.S. Attorney's Office in Arizona announced Friday that it had entered into a non- prosecution agreement with the company because of its cooperation with investigators.
According to authorities, meat-department managers sold steaks for $10 more per pound by mislabeling the grade of "choice'' tenderloin as "prime.''
Employees also added trimmings from other meat products to Kobe ground beef, so customers weren't always getting pure ground beef.
Bashas' agreed to pay $1.5 milion to food banks in Tucson and Phoenix as a form of restitution.
The company operates more than 100 grocery stores in Arizona, New Mexico and California.