Petco settles $1.75 million consumer lawsuit

 Petco Animal Supplies Inc., accused of overcharging consumers and improperly caring for animals, agreed to settle a $1.7 million consumer protection lawsuit today without admitting liability, said Deputy District Attorney Leslie Hanke of the Consumer Protection Division.

The district attorneys of four California counties, including Los Angeles and San Diego, filed the civil complaint in San Diego Superior Court.

The investigation into pricing accuracy revealed that Petco failed to remove some expired price tags from store shelves, resulting in actual or potential customer overcharges. The company had also failed to adequately instruct its employees on weighing and charging for bulk sale items such as dog biscuits and other pet treats.

An investigation also revealed that Marine County stores did not adequately clean and maintain animal habitats as required by California's Pet Store Animal Care Act.  Animal welfare inspectors also found that in some instances, sick animals were not identified and removed from sales floor habitats.

Under terms of the judgment, the pet supply retailer agreed to pay civil penalties and legal costs incurred by prosecutors and investigators.

Petco also agreed to initiate and maintain pricing procedures and policies to ensure that consumers are not overcharged for their purchases. The company also agreed to institute methods for the proper care and maintenance of animals and the retailer will be suject to annual, third-party audits to ensure compliance.

The San Diego-based corporation reached a settlement involving similar allegations in 2004. Under the terms of that settlement, the company paid more than $850,000.