A $34.2 million settlement has been announced against a nationwide jewelry retailer that sold military-themed gifts, jewelry, and watches at stores located on or near military bases across the country.
The settlement, announced Wednesday, resolves allegations that Harris Jewelers targeted military service members with dishonest sales and financing tactics at now-shuttered stores located near military bases across the country, California Attorney General Rob Bonta announced.
“During Military Consumer Protection Month, we recognize that while our military service members devote their lives to protecting our country, there are still some who see them as financial targets to be exploited,” Bonta said in a statement. “Today’s settlement should serve as a warning to any businesses thinking of engaging in shady practices to make an extra buck: We will not stand idly by.”
Bonta joined the Federal Trade Commission and the attorneys general of Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Nevada, New York, North Carolina, Pennsylvania, Virginia, and Washington in the suit.
Harris Jewelers targeted active duty service members with the sales pitch that purchasing from them on credit would, regardless of their credit history or subsequent payments, improve service members’ credit scores, according to the release.
The New York-based company also utilized unfair and deceptive sales practices in connection with its jewelry protection plan and failed to include disclosures in its advertisements and retail installment sales contracts as required under the Truth in Lending Act and Military Lending Act, the release states.
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The settlement requires the company to write off $21.3 million in consumer debt nationwide. It is also required to stop collecting over $21.3 million in outstanding debt that is held by 13,426 servicemembers and to provide nearly $12.9 million in refunds to 46,204 servicemembers who paid for protection plans.
Harris Jewelry will also be required to vacate judgments against 112 consumers totaling more than $115,000 and delete any negative credit entries reported to consumer reporting agencies.
Harris Jewelers must also comply with significant injunctive terms, including ceasing operations of its businesses and a ban on the future marketing or sale of related products.
A copy of the settlement, which is subject to court approval, can be found here.
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According to its website, Harris Jewelers permanently closed its stores due to the COVID-19 pandemic.
"However, Harris remains committed to serving its customers via this website and phone at 1-800-989-7732 (Mon-Fri, 9:30 am–5:30 p.m. ET, excluding federal holidays)," the website reads.
Reach Julia LeDoux at Julia@connectingvets.com.