Pet supply giant, PetSmart, has settled a lawsuit brought by prosecutors in several California counties, including San Diego, by agreeing to pay $1.46 million for allegedly overcharging customers. FOX 5 San Diego reported, that the accusations involve customers being charged higher prices than what was advertised, raising questions of transparency and fairness in pricing practices. As a part of the settlement, the retail chain admitted no wrongdoing.
Filed in Santa Cruz County on behalf of multiple district attorney's offices, the lawsuit was joined by prosecutors from Los Angeles, Ventura, San Diego, and Marin counties, with PetSmart ordered to pay the substantial amount to settle the litigation, according to the Patch. Although the company did not accept responsibility for the accusations, the settlement will still require it to pay $1.25 million in penalties, $100,000 in restitution, and $110,000 to cover the costs of investigating the allegations. It is worth mentioning that the restitution funds will be utilized to support "future enforcement of consumer protection laws" as per officials.
Los Angeles County District Attorney George Gascón commented on the case, stating that charging customers prices higher than those advertised is both "misleading and unfair." He went on to say that customers have the right to expect that advertised prices will be honored, and it's crucial for companies to comply with advertising regulations while ensuring transparency in their pricing practices.
As part of the settlement, PetSmart will be prohibited from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item, FOX 5 San Diego detailed. In addition, the retailer will be directed to implement more audits and procedures to ensure accurate prices in its California stores. Over the next three years, these measures will mandate PetSmart to notify customers of their right to be charged the lowest advertised price for any item offered for sale.
Prosecutors acknowledged the company's cooperation with the investigation, and it has been reported that PetSmart has since instituted new policies and procedures aimed at improving its pricing accuracy, according to ABC 10 News. San Diego County District Attorney Summer Stephanemphasized the commitment to protect customers by ensuring businesses charge them accurately and comply with California law. She added that their Consumer Protection Unit has been at the forefront, leading a state-wide team of district attorneys in bringing pricing accuracy cases against major retailers in California.
