Facts

On June 20, 2023, the Santa Cruz District Attorney's office, along with seven other district attorney's offices throughout California, filed suit against PetSmart LLC in Santa Cruz Superior. The complaint, seeking, among others, restitution, civil penalties, injunctive and other relief, alleged violations of the Business and Professions Code and Unfair Competition laws.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that after the Offices of Agricultural Commissioner, Weights and Measures Departments, conducted numerous pricing inspections at various defendant stores, it found significant patterns and practices of overcharging of products sold at its stores.

DEFENDANT'S CONTENTIONS: Defendant did not admit to any liability or wrongdoing.

Result

The parties settled with defendant agreeing to pay a total of $1.46 million, which included $1.25 million in civil penalties; $110,000 reimbursement costs along with $100,000 in restitution to support consumer protection efforts. Moreover, defendant was required to implement new policies and procedures to improve pricing accuracy; was prohibited from engaging in false or misleading advertising and charging more than the lowest posted price. Finally, defendant additional audit and price accuracy procedures were required for a three-year period.