PETCO Animal Supplies, Inc., agreed today to settle a $1.75 million consumer protection lawsuit alleging that the company overcharged consumers and improperly cared for animals.

The District Attorneys of four California counties, including Los Angeles County District Attorney Steve Cooley, and the City Attorney of San Diego filed the civil complaint in San Diego Superior Court.

Deputy District Attorney Leslie Hanke of the Consumer Protection Division said the pet supply retailer agreed to the settlement without admitting liability. Under the terms of the stipulated judgment, PETCO 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 additionally agreed to institute methods for the proper care and maintenance of animals. The retailer will also be subject to annual, third-party audits to ensure compliance.

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

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 also failed to adequately instruct its employees on weighing and charging for bulk sale items such as dog biscuits and other pet treats.

Inspections of PETCO stores in Marin County by the county’s humane society revealed that animal habitats were not adequately cleaned and maintained 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.

The case was investigated by the Los Angeles County Department of Agricultural Commissioner/Weights & Measures, the California Department of Food and Agriculture Division of Measurement Standards, plus several other weights and measurements offices throughout the state.

PETCO worked cooperatively in both the investigation and in resolving the case with prosecutors. The stipulated judgment was signed on June 2 by Judge Richard S. Whitney