It isn't legal basis. It is harrassment. They hit them over and over with frivelous lawsuits, block them from the Pet Expos, distribute propaganda electronically and physically, etc. Finally, PetCo gives in because they just want to do business.
Finally, PetCo gives in because they just want to do business.
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That is the way I read it the first time -- and what I suspected from the PETA whackos. Petco is STUPID not to sue the crap out of PETA. Insanity. (unless Petco really does have something to hide, but PETA cannot show it). Just insanity for Petco to take it.
Oh well, their choice.