Pet supply retailer PetSmart has been ordered to pay $1.46 million to settle a lawsuit that alleges it overcharged customers for items listed in its advertisements.
The lawsuit was filed in Santa Cruz County on behalf of district attorney’s offices across the state, including Los Angeles, Ventura, San Diego and Marin counties.
As part of the settlement, PetSmart admitted no wrongdoing, but will still be ordered to pay $1.25 million in penalties, $100,000 in restitution and $110,000 to reimburse the costs of investigating the allegations. The restitution will be directed to support “future enforcement of consumer protection laws,” officials said.
Los Angeles County District Attorney George Gascón said companies who charge customers prices that are higher than what was advertised is “misleading and unfair.”
“Customers have the right to expect that the prices they see advertised will be honored. It’s important for companies to adhere to advertising regulations and ensure transparency in their pricing practices,” Gascón said.
PetSmart is prohibited from “engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item,” the DA’s Office said.
In addition to the fines, PetSmart has also been directed to implement more audits and procedures to ensure accurate prices in its California stores. Over the next three years, the retailer will be required to notify customers of their right to be charged the lowest advertised price for any item listed for sale.