Opinion ID: 6330519
Heading Depth: 3
Heading Rank: 3

Heading: Discount Club Programs

Text: Beginning in March 2008, Safeway introduced its Match‐ ing Competitor Generic Program (“MCGP”) in five other ge‐ ographic divisions. The MCGP offered certain generic drugs for the same price as the $4 Generics Program: $4 for a 30‐day supply, $8 for a 60‐day supply, and $12 for a 90‐day supply.1 The primary difference between the two programs was that MCGP prices were not offered to all customers automatically. To receive discounted prices, customers needed to pay in cash (without using insurance) and fill out an enrollment form. There was no fee to enroll, and the enrollment form collected 1If a drug was not included on Safeway’s formulary, MCGP members re‐ ceived 10% off of branded drug prescriptions and 20% off of generic drug prescriptions. No. 20‐3425 7 information that Safeway often already had, including a cus‐ tomer’s address, birthdate, dependents, and phone number. Unlike Safeway divisions participating in the $4 Generics Pro‐ gram, divisions participating in the MCGP did not report these prices as their U&C prices. Customers enrolled in the MCGP could also obtain a lower price by requesting that Safe‐ way match a competitor’s price. With one exception not relevant to this appeal,2 Safeway terminated the MCGP program in July 2010 and replaced it in all divisions with the Loyalty Membership Program (“LMP”). The LMP was functionally identical to the MCGP: all a cus‐ tomer needed to do in order to receive a discount was pay in cash and fill out an enrollment form. There was no enrollment fee, and the enrollment form provided no meaningful infor‐ mation to Safeway. Once again, Safeway did not report prices offered through this program as its U&C prices. Safeway di‐ visions participating in the MCGP and LMP advertised the benefits of the programs to varying degrees. Safeway discon‐ tinued the LMP on July 15, 2015, the same day it discontinued its individual price‐matching program.