$3.7M Settlement Reached In Pep Boys Lawsuit: Alameda County DA

ALAMEDA COUNTY, CA — A multi-million dollar settlement has been reached following allegations by Alameda County and other California counties that retailer Pep Boys violated California laws by routinely and illegally disposing of automotive fluids, used motor oil and other hazardous wastes into trash bins destined for municipal landfills, according to a news release from the Alameda County District Attorney's Office.

Alameda County District Attorney Nancy E. O’Malley announced the $3.7 million settlement Monday. It resolves the case against The Pep Boys Manny Moe & Jack of California (Pep Boys), which also alleged that Pep Boys routinely failed to shred customer records containing confidential information before disposing of those items in the trash.

“When businesses like this one illegally dispose of toxic waste, they pollute our natural resources. Substances like motor oil and automotive fluids leach into the soil and the groundwater. They make their way into streams, and eventually the San Francisco Bay, poisoning wildlife, sea life alike,” O’Malley said in a released statement. “There are good reasons that regulations exist for the disposal of toxic materials and my office will continue to investigate and bring to justice any business that violates these important environmental protection laws.”

The investigation of Pep Boys was initiated and led by the Alameda County District Attorney’s Office Environmental Protection Unit. From April 2014 through November 2017, inspectors from the Alameda County District Attorney’s Office Environmental Protection Division, investigators from other district attorney offices, and environmental regulators statewide, conducted a series of undercover inspections of waste bins originating at 19 separate Pep Boys facilities, according to O'Malley's office.

The inspections found "numerous instances of unlawful disposal of hazardous waste, including automotive fluids, batteries, aerosol cans, electronic devices, used oil and other regulated hazardous waste. Pep Boys also violated laws protecting vulnerable confidential consumer information by unlawfully disposing of customer records without having rendered personal information unreadable," Monday's news release stated.

"Pep Boys also violated laws protecting vulnerable confidential consumer information by unlawfully disposing of customer records without having rendered personal information unreadable," the release continued.

When Pep Boys officials were notified by prosecutors of the unlawful disposals, the company fully cooperated and quickly responded to enhance its policies and procedures, according to O'Malley's office.

"Pep Boys is committed to the responsible management of waste and environmental stewardship, as evidenced by how quickly we were able to enhance our existing policies and procedures, and we appreciate the opportunity to improve our procedures to address California officials’ concerns," read a company statement provided by Pep Boys communications director Arianna Stefanoni Sherlock. "We’re pleased to have come to an agreement with the attorney general’s office and will continue to work together to ensure our stores remain compliant with the order and state law."

Stores are required to properly manage hazardous waste, and to retain their waste in segregated, labeled containers so as to minimize the risk of exposure to employees and customers and to ensure that incompatible wastes do not combine to cause dangerous chemical reactions.

As part of the $3.7 million settlement, $1.815 million is for civil penalties, $260,000 is for supplemental environmental projects, and $425,000 is for reimbursement of investigative and enforcement costs, according to O'Malley's office.

Pep Boys gets a credit of $1.2 million against the penalties if it undertakes at least $2.4 million in environmental enhancement work not required by law, O'Malley's office stated.

In addition, the settlement includes provisions requiring Pep Boys to undergo a trash receptacle audit to ensure hazardous waste and confidential consumer information is properly disposed of at all facilities. The results of the audit must be shared with the public.

Joining Alameda County in the lawsuit were the District Attorneys of Kern, Orange, San Bernardino, San Diego, San Joaquin, San Mateo, Ventura and Yolo counties.

O’Malley previously announced a $9.86 million statewide settlement with O’Reilly’s Auto Parts (November 2016) and an $11 million statewide settlement with AutoZone, Inc. (June 2019) for similar violations of California’s hazardous waste laws.

Pep Boys is an automotive service retailer and distributor of automotive replacement parts, accessories, and engine additives in North America. In California it owns or operates approximately 151 retail facilities and a distribution center.