For Safeway’s updated policy see here.
This is directly from their site:
1. We will redeem coupons only for the specific items included in our customer’s purchase transaction. The redemption value will be as stated on the coupon, unless that value yields a final price for such item less than zero; if application of the redemption value yields a price less than zero, the coupon will be redeemed only for the amount that yields a zero price (our customer cannot net a cash credit or payout from a coupon purchase).2. Paper coupons must be presented at the time of the purchase transaction. We will accept only coupons issued by Safeway or the manufacturer of the relevant product. We will not accept photocopies of coupons.
3. Coupons are subject to advertised offer limitations and all other limitations and restrictions on the applicable coupon or product.
4. Coupons may not be applied against any free item received in any offer.
5. Coupons have no cash value.
6. Safeway will not accept manufacturer coupons (including, but not limited to, coupons issued through a Catalina or other in-store coupon dispenser) that display another retailer’s logo or name unless such coupon is for a specific item with the same product identifiers as the product included in our customer’s purchase transaction.
7. We will not accept coupons unless they have an expiration date. Expired coupons will not be accepted.
8. We will not accept coupons that, in the determination of Safeway personnel, appear distorted or blurry or are altered in any way.
9. Sales taxes will be applied in accordance with the law of the applicable state, regardless of any coupon or other discount that may apply to the purchase transaction.
10. All applicable bottle and packaging deposits on the purchased and free items must be paid by the customer.
11. Safeway reserves the right to refuse any coupons at its discretion.
12. Purchase reward thresholds (if any) will be calculated based upon customer’s final price (after deducting Club Card savings and all other discounts and savings) before deductions for any manufacturer coupons. As an example (and not as an offer), if a $10 minimum purchase is required for a customer reward, a customer’s order at full retail would be $12, a Club Card discount of $1.75 applies, and a manufacturer’s coupon of $1 applies, the customer would be given credit for a $10.25 purchase, and would be eligible for the reward (assuming compliance with all other requirements) even though the customer’s cash payment would be only $9.25. The manufacturer’s coupon would not be deducted from the total for purposes of determining reward eligibility. Purchase reward thresholds (if any) will be calculated based upon customer’s final price (after deducting Club Card savings, and all other discounts)
13. References to a threshold purchase requirement will exclude purchases of: Beer, Wine, Spirits, Tobacco Products, Fuel, All Fluid Items in the Refrigerated Dairy Section (including Fluid Dairy and Dairy Substitutes), Prescription Items and Co-payments, Bus/Commuter Passes, Fishing/Hunting Licenses and Tags, Postage Stamps, Money Orders, Money Transfers, Ski Tickets, Amusement Park Tickets, Event Tickets, Lottery Tickets, Phone Cards, Gift Cards, and Gift Certificates; also excluded are: Bottle Deposits, Redemption Values, and Sales Taxes.