PetSmart has agreed to settle a lawsuit with prosecutors in Los Angeles and other California counties over allegations of overcharging customers for items that were advertised at lower prices. The settlement, announced on Thursday, involves PetSmart paying $1.46 million.
While PetSmart did not admit any wrongdoing, the company will pay $1.25 million in penalties, $100,000 in restitution to support future enforcement of consumer protection laws, and $110,000 in investigative costs, according to the Los Angeles County District Attorney’s Office.
As part of the settlement, PetSmart is now prohibited from engaging in false or misleading advertising and from charging more than the lowest advertised price for a product. Over the next three years, the company will also be required to establish additional audit and price-accuracy procedures in its stores.
District Attorney George Gascón stated, “Charging customers prices 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.”
The lawsuit originated in Santa Cruz County, with prosecutors from Alameda, Contra Costa, Marin, San Diego, and Ventura counties also participating.
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