- Colorado AG Phil Weiser filed a lawsuit against pet care retailer PetSmart, alleging the company engaged in unfair and deceptive trade practices related to its employee training program, the Grooming Academy.
- According to the complaint, PetSmart allegedly misrepresented the Grooming Academy and related grooming toolkit as free, but required employees to sign training repayment agreement provision (TRAP) contracts after they had enrolled in the program. Under these agreements, employees could be obligated to repay $5,000—or $5,500 if they accepted the toolkit—if they left PetSmart voluntarily or involuntarily within two years of starting the program. The amount owed was reduced by half after one year and eliminated after two years. The complaint states that PetSmart often pursued repayment through third-party debt collectors.
- The AG further alleges that PetSmart engaged in unconscionable conduct by requiring low-wage employees with little bargaining power to sign TRAP agreements mid-training—sometimes during shifts or breaks—and that many employees were dissatisfied with the quality of the training but stayed in their jobs out of fear of having to repay the debt.
- The lawsuit seeks declaratory and injunctive relief, civil penalties, and attorneys’ fees and costs, among other forms of relief.