AG Ferguson files lawsuit against Puppyland; alleging false health guarantees, predatory loans

Washington State Attorney General Bob Ferguson filed a lawsuit against a pet store for false health guarantees for its puppies, while unfairly maneuvering buyers into signing predatory loans with interest rates without adequate time to understand the terms.

The lawsuit, filed in King County Superior Court, alleges Puppyland and its owners misrepresented both the breeding standards of puppies it sold. It will seek penalties and restitution under the state Consumer Protection Act for Puppyland’s deceptive and unfair advertising and sales practices.

Puppyland has a store in Puyallup, and had a location in Renton. The owners, Kayla and Justin Kerr, formerly owned Puppyworld in Olympia and have Puppyland-branded stores in Georgia, Idaho and Texas. Puppyland has been in operation since 2018. 

In a written statement to FOX 13, Kayla Kerr wrote: "The premise of the lawsuit is inconsistent with our values and business practices. The health and welfare of our puppies has been and remains our first priority, and we give more people the ability to buy their next 'forever' pet."

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More people from the community are coming forward with concerns after Q13 News ran a story about Puppyland in Renton back in 2019, where a couple accused the company of an expensive and confusing puppy leasing agreement.

"The purchase of a family pet is a significant and meaningful transaction," Ferguson said. "Businesses that sell puppies and other pets have an obligation to consumers not to deceive them or take advantage of them. We will continue working to ensure Washington families seeking to purchase a household pet are treated fairly."

The AG's Office believes more than 7,000 customers purchased puppies from Puppyland at Washington stores.

According to a news release, consumers complained to the AG's Office that the puppies they purchased often became violently sick, and some animals died after coming home to their new owners. 

In one, especially tragic, portion of the suit one dog's death is explained as taking place "in the arms" of a 13-year-old. The family still were on the hook for additional expenses following the ordeal. 

Ferguson's lawsuit alleges the store advertised industry-best breeding standards and health guarantees for its animals, telling prospective customers that its puppies met rigorous health and breeding standards and that the company stood behind these assurances with a money-back guarantee.

The lawsuit asserts that the store designed its business to manipulate consumers into signing predatory loans without a meaningful opportunity to review the terms, an unfair practice in violation of the Consumer Protection Act, according to the release.

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The lawsuit also alleges the store tried to prevent customers from speaking out about their experience and stated, "Puppyland’s standard purchase paperwork included an illegal non-disclosure provision that attempted to prevent consumers from sharing truthful information about their experience. Individuals who signed the paperwork agreed not to 'disparage, defame, sully or compromise the goodwill' of Puppyland, or face the threat of legal action."

Puppyland faces thousands of dollars in penalties.

Simultaneously, Puppyland is facing an uphill battle to keep it's current business model alive. The legislature has been quickly moving House Bill 1424 through Olympia, which closes loopholes that allow dogs from out-of-state puppy mills to be sold within Washington.

"As a legislator you know there's a problem when you say, ‘This should be illegal,’" said Rep. April Berg, who proposed the bill in this year's legislature.

Rep. Berg told FOX 13 that the bill doesn't ban any business from selling dogs, but enforces Washington breeding standards and reduces predatory lending practices that have long been the focus of complaints directed at Puppyland.

"The predatory lending piece was just egregious – you had some of these loans up to 199-percent interest."