Publx, the grocery store chain that operates more than 700 grocery stores in the US, has been accused of running a scam involving the sale of fake products on its website.
The ad-spoofing company, PublX, has since suspended the advertising program.
The company is the latest in a string of internet-based grocery retailers that have been hit with accusations of running shady deals.
Last year, a Florida-based retailer, Walmart, was fined $2.7m for running a fake online ad campaign that fooled people into buying its groceries.
A New York-based chain, Whole Foods, has also faced allegations of selling fake food.