Puppyland to pay $3.75 million as a result of consumer protection lawsuit

Resolution requires store to end its illegal advertising, sales practices

SEATTLE - Attorney General Nick Brown today announced the resolution of a lawsuit against Puppyland and its owners. Puppyland will pay the state $3.75 million and end its illegal advertising and sales practices.

The Attorney General's Office filed a lawsuit against Puppyland and its owners in King County Superior Court in April 2023 for failing to honor advertised health guarantees, channeling customers into predatory loans, and using non-disparagement provisions in their purchase agreements that illegally restricted truthful online reviews.

The lawsuit, filed under the administration of former AG Bob Ferguson, asserted Puppyland misrepresented both the breeding standards of puppies it sold and the health guarantees it offered. Meanwhile, the business unfairly maneuvered buyers into signing loans with interest rates approaching 200% without adequate time to review and understand the terms.

"Puppyland took advantage of people's love for pets to maneuver them into taking on crushing debt for dogs with serious health issues, and then they tried to silence them," said Brown, who was sworn in as Washington's 19^th attorney general on Jan. 15. "This resolution will give pet buyers more transparency and require Puppyland to end its predatory sales tactics."

The resolution filed with the court requires Puppyland to pay the office $3.75 million in installments by June 30, 2026. The payments will accrue 12% annual interest until the full amount is paid. The Attorney General's Office will focus its consumer restitution efforts on those who were stuck with expensive veterinary bills when Puppyland did not honor its health guarantee.

The Attorney General's Office estimates that more than 7,000 individuals signed non-disparagement provisions with Puppyland's Washington stores since the company started operations in 2018. Puppyland will provide the office with records from every purchase. The office estimates those eligible for restitution are a small portion of Puppyland's Washington customers.

Individuals who purchased a puppy from Puppyland that got sick within a year of purchase may be able to file a claim for reimbursement of significant vet bills. Anyone who believes they may be within this group of consumers should send an email to [email protected] to receive notice of any future claims process.

The court order also requires Puppyland to make numerous reforms to its sales and advertising practices. Among them:

• Puppyland can no longer require non-disparagement provisions in its sales contracts;
• Puppyland cannot refuse to negotiate with consumers on pet costs;
• Puppyland is prohibited from advising consumers on loans;
• Puppyland employees cannot falsely advertise breeding standards; and
• Puppyland must clearly advertise the price range of its puppies.

Puppyland has one store in Puyallup, and previously operated a store in Renton. The owners, Kayla and Justin Kerr, formerly owned Puppyworld in Olympia.

Following Ferguson's lawsuit, the Legislature passed a law in 2023, HB 1424, that models ordinances in Pierce County regarding how pet stores can operate. State law ends financing for pet sales and requires pet stores to obtain their animals from a U.S. Department of Agriculture licensed breeder or licensed broker. It also requires that advertisements for sales include the range of prices for each dog, its age and information regarding the breeder and ensures that information is clearly visible at a store entrance. The resolution will require Puppyland to follow state and local laws.

Assistant Attorneys General Aaron Fickes, Ashley Gomez, Michael Hall, Juju Aldhaher, Michael Bradley, Alexandra Kory, Claire McNamara and Bob Hyde; Senior Investigator/Analyst Renee Shadel; Paralegals Emin Aliiasov, Elliot Raven, Serina Clark and Michelle Paules are handling the case for the Attorney General's Office.

Read more about this lawsuit here.

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