OLYMPIA, Wash. – The Washington Office of the Insurance Commissioner (OIC) has issued a cease-and-desist order against Fred Meyer for unlawfully selling insurance.
According to OIC, Fred Meyer sold a GUARD protection plan from June 2016 to Nov. 2022 without being licensed to sell insurance.
“Fred Meyer stores sold the GUARD Protection Plan, issued by Mack Camera & Video Service, to a consumer in Washington. That consumer filed a complaint with the Office of the Insurance Commissioner about the service contract, alleging claim delay and misrepresentation,” OIC said.
After OIC investigated the consumer complaint, the office determined that Fred Meyer did not have a proper license to sell the insurance and was receiving $40 for each contract.
OIC announced a $100,000 fine pending a hearing against Fred Meyer on Thursday. Kroger, the parent company of Fred Meyer, has refused to tell OIC the number of GUARD plans it has sold according to a cease-and-desist order filed by the state.
“Kroger stated its contracts with Mack and the replacement service contract provider contained ‘non-disclosure covenants’ and that Fred Meyer ‘considers its sales information to be very sensitive.’ [The company] did not provide the requested information to the OIC,” the office said.
The Washington Insurance Commissioner is the second prominent legal official to issue an announcement regarding Kroger this month. Washington Attorney General Bob Ferguson touted a win for his office last week when an antitrust lawsuit against Kroger was allowed to move forward by the King County Superior Court.
