Retailer Pet Valu has reached a settlement with the state Department of Consumer Protection after an investigation initiated through an inquiry by the Milford-Orange Times revealed the chain was holding closing out sales without following state state laws on such sales.
Pet Valu and the company SB360, which was hired to assist with the closing out sales in the state, agreed to pay the state $3,000 as part of the settlement. Pet Valu has also filed for the necessary closing-out licenses.
State laws require stores that are closing out their inventory to acquire a license and follow certain practices meant to protect consumers.
The Pet Valu location in Milford, along with 28 other locations around Connecticut, began hosting closing out sales on Nov. 5, according to the settlement.
The national chain announced it was shuttering in early November. Online sales have already ended, and the physical locations are expected to wind down in January.
State law requires a license be obtained prior to promoting or holding a closing out sale, for each location where the sale will be held.
In addition to obtaining a license, the store being closed cannot bring in new items. The store may only sell the items “within the four walls” of the establishment where the sale is to be conducted at the time of application. The applicant also must the DCP with a complete inventory of the goods, wares and merchandise on hand.
The commissioner of the DCP can impose a $500 civil penalty after an administrative hearing if a business fails to comply. Each day that goes by without compliance is considered a separate offence under Connecticut statutes, meaning that the cost can add up quickly. Failure to follow the rules runs afoul of Connecticut’s Unfair Trade Practices Act and can result in more penalties.
Pet Valu and SB360 did not admit to any wrongdoing or violation of the law as part of the settlement. SB360 and Pet Valu denied that they engaged in any conduct that would trigger the application of the CUTPA.