San Diego, 4 counties settle with Petco in consumer lawsuit - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

San Diego, 4 counties settle with Petco in consumer lawsuit

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LOS ANGELES (AP) - Prosecutors in five California counties say Petco Animal Supplies Inc. has agreed to pay $1.75 million to settle a lawsuit alleging the company overcharged customers and improperly cared for animals it offered for sale.

Petco doesn't admit liability in an agreement a San Diego judge signed Wednesday. But the company says it will promptly remove expired price tags from shelves, change the way some animals are cared for, and pay civil penalties and costs submitted by prosecutors and investigators.

The retailer agreed to annual third-party audits to ensure compliance.

District attorneys in Los Angeles, San Diego, Marin, San Mateo and Santa Barbara counties filed the lawsuit in San Diego, where Petco is based.

Among the allegations, inspectors found that some habitats for birds, fish and reptiles were not properly cleaned.

Copyright 2010 The Associated Press.

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