Major Retailer Accused Of Overcharging Contra Costa County Customers

CONTRA COSTA COUNTY — PetSmart, one of the largest pet supply retailers in the state, will pay $1.46 million to settle a lawsuit alleging the company overcharged customers, district attorneys across the state announced Thursday.

The retailer charged customers higher prices for items that had been advertised for sale at lower prices, according to a lawsuit filed in Santa Cruz County on behalf of district attorneys for Alameda, Contra Costa, Marin, San Diego, Santa Cruz and Ventura counties.

PetSmart admitted no wrongdoing in the settlement. However, under the settlement, the company will pay $1.25 million in penalties and another $100,000 in restitution to be used for the enforcement of consumer protection laws. The final $110,000 will cover investigative costs.

Furthermore, PetSmart is prohibited from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. The company will also be required to implement and auditing system to verify price accuracy in its stores for three years, according to the terms of the settlement. PetSmart will also be required to notify customers of their right to be charged the lowest currently advertised price for any item offered for sale.

“Charging customers prices higher than what was advertised is misleading and unfair,” Los Angeles County District Attorney George Gascón said. “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.