On July 6, Santa Cruz County District Attorney Jeffrey S. Rosell announced PETSMART LLC will pay $1.46 million to settle a civil law enforcement complaint alleging that PetSmart engaged in false advertising and unfair competition.
The stipulated judgment, a written agreement, was filed in Santa Cruz County Superior Court by the Santa Cruz District Attorney, Consumer and Environmental Protection Unit, along with the district attorneys of Alameda, Contra Costa, Los Angeles, Marin, San Diego, Sonoma, and Ventura.
The civil complaint filed by prosecutors alleged that PetSmart unlawfully charged customers prices higher than PetSmart’s lowest advertised price for items.
The judgment includes an injunction that prohibits PetSmart from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. It also requires PetSmart to implement additional audit and price accuracy procedures in its California stores for three years to ensure compliance with pricing accuracy requirements, including notifying customers of their right to be charged the lowest currently advertised price for any item offered for sale.
The judgment requires PetSmart to pay $1,250,000 in civil penalties, $100,000 in as near as possible restitution to support future enforcement of consumer protection laws, and $110,000 in costs to the various county Agricultural Commissioners/Sealers around the state who conducted the investigation.
PetSmart has not admitted any liability or wrongdoing but has cooperated with inspectors and prosecutors during the investigation and has since instituted new policies and procedures to improve pricing accuracy, according to Rosell.
The Santa Cruz County Agricultural Commissioner, Weights and Measures Division, is the agency that inspected the PetSmart store in Santa Cruz and is instrumental in monitoring retailers to make sure that consumers are being charged the lowest advertised price for items.
“We are committed to prosecuting pricing accuracy violations and ensuring that businesses charge customers accurately and are in compliance with California law,” Rosell said. “Consumers should always watch as items are scanned at the register and check receipts to verify that they are charged the lowest advertised or posted price for items.”