Alameda and Contra Costa counties joined in the lawsuit.
MARTINEZ — Prosecutors and representatives for a pet-supplies corporation have reached a settlement over a lawsuit claiming the corporation overcharged customers and committed false advertising, officials said.
With the settlement in the multi-county lawsuit, PetSmart LLC agreed to pay $1.46 million and acknowledged it created unfair competition, Contra Costa County District Attorney’s Office spokesperson Ted Asredgadoo said in a statement. PetSmart will pay $1.25 million in civil penalties, $100,000 in restitution to support efforts for consumer protection and $110,000 for the cost of the investigation to various counties, Asregadoo said. They also have implemented new policies and procedures to improve pricing accuracy.
The agreement also includes orders that prohibit the company from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item, he said. According to Asregadoo, PetSmart must add additional audit and price accuracy procedures in its California stores for a three-year period.
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