PetSmart Resolves Allegations of Price Overcharges and False Advertising

Sonoma County District Attorney Carla Rodriguez announced today that PETSMART LLC entered a Stipulated Judgment and will pay $1,460,000 to settle a civil law enforcement complaint that alleged that PetSmart engaged in false advertising and unfair competition.  The action was filed in Santa Cruz County Superior Court by Rodriguez’s Environmental and Consumer Law Division along with the District Attorneys of Alameda, Contra Costa, Los Angeles, Marin, San Diego, Santa Cruz, and Ventura. The civil complaint filed by prosecutors alleged that PetSmart unlawfully charged customers prices higher than PetSmart’s lowest advertised price for items. 

District Attorney Rodriguez stated, "We are committed to prosecuting pricing violations and ensuring that businesses charge customers accurately and in compliance with California law. Consumers should always watch as items are scanned at the register and check receipts to verify that they are charged the lowest advertised or posted price for items.”

The Judgment includes an injunction that prohibits PetSmart from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. Additionally, the Judgment requires PetSmart to implement additional audit and price accuracy procedures in its California stores for a three-year period to ensure compliance with pricing accuracy requirements, including notifying customers of their right to be charged the lowest currently advertised price for any item offered for sale.

The Judgment also requires PetSmart to pay $1,250,000 in civil penalties, $100,000 in cy pres restitution to support future enforcement of consumer protection laws, and $110,000 in costs to the various county Agricultural Commissioners/Sealers around the state who conducted the investigation. PetSmart cooperated with inspectors and prosecutors during the investigation and has since instituted new policies and procedures to improve pricing accuracy.

The Sonoma County Agricultural Commissioner, Weights and Measures Division, is the agency that inspected PetSmart stores throughout Sonoma County and is instrumental in monitoring retailers to make sure that consumers are being charged the lowest advertised price for items. The agency takes complaints from members of the public who believe they have been overcharged by businesses at (707) 565-2371. Chief Deputy District Attorney Matthew Cheever prosecuted the case for the Sonoma County District Attorney's Office.

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