Los Angeles County District Attorney Announced Settlement On July 6
By Dolores Quintana
Los Angeles County District Attorney George Gascón announced on July 6 that PetSmart LLC had reached a settlement, agreeing to pay $1.46 million to resolve a lawsuit accusing the company of overcharging customers for advertised items. The lawsuit, filed on behalf of several district attorney’s offices, including those in Alameda, Contra Costa, Los Angeles, Marin, San Diego, Santa Cruz, and Ventura counties, alleges that PetSmart unlawfully charged customers prices higher than the lowest advertised price for various products.
District Attorney Gascón emphasized the importance of honoring advertised prices, stating, “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.” He further highlighted the need for companies to comply with advertising regulations and ensure transparent pricing practices.
As part of the settlement, PetSmart denies any wrongdoing but has agreed to pay $1.25 million in penalties, allocate $100,000 for restitution to support future consumer protection enforcement and cover $110,000 in investigative costs. Additionally, the company is now prohibited from engaging in false or misleading advertising and charging prices higher than the lowest advertised price.
The settlement also imposes specific requirements on PetSmart, including implementing additional audit and price accuracy procedures in its California stores for three years. These measures aim to ensure compliance with pricing accuracy regulations and include notifying customers of their right to be charged the lowest currently advertised price for any item available for sale.
