PetSmart will face a large penalty and other costs as it settles a lawsuit from seven California district attorneys regarding its advertising and charging practices.
The settlement comes after the district attorneys accused PetSmart of making customers pay more than the lowest price it advertised for certain items, the Los Angeles County District Attorney’s Office said Thursday. The total amount the pet supplies retailer will have to pay will come to $1.46 million.
FOX Business reached out to PetSmart for comment. The settlement between the company and the district attorneys did not include an admission of wrongdoing, according to the LA County DA’s office.
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Of the $1.46 million, a majority – $1.25 million – will go toward penalties. The rest will cover restitution to "support future enforcement of consumer protection laws" and investigative costs, the LA County DA’s office said.
The settlement also had other provisions forbidding the company from "false or misleading" advertising and from overcharging shoppers.
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The six other counties involved in the lawsuit were Alameda, Contra Costa, Marin, San Diego, Santa Cruz and Ventura.
"Customers have the right to expect that the prices they see advertised will be honored," George Gascon, the DA for LA County, said. "It’s important for companies to adhere to advertising regulations and ensure transparency in their pricing practices."
More procedures related to "price accuracy" have been mandated for three years at the pet supplies retailer’s locations in the Golden State, the LA County DA’s office said.
PetSmart's retail presence in California involves over 160 stores, according to its website. Overall, it reports having over 1,660 across North America.
