Petco Animal Supplies has paid $1.75 million in penalties to settle a case in which the company was accused of overcharging California customers and neglecting animals in its stores. The settlement has received court approval. It was filed as a result of state and county inspections of Petco stores around the state between 2005 and 2008. According to prosecutors, an investigation revealed that Petco failed to remove expired price tags from store shelves and did not instruct its employees on weighing and charging bulk sale items such as dog biscuits. Petco must also conduct regular pricing audits, according to the settlement. Inspections of Petco stores by the humane society officials revealed that some animal habitats were not being properly maintained. As a condition of the settlement, Petco agreed to conduct daily animal and habitat inspections and comprehensive employee training.