The jewelry was not worth the price, and consumers often reported stones falling out, chains breaking, and the finish fading. For example, Harris Jewelry purchased its popular Mother’s Medal of Honor at $77.70 but sold it at $799. The OAG’s investigation found that the company dramatically inflated the retail price of its products, generally by multiplying its wholesale cost by six or seven times, and in some cases 10 times the wholesale cost. The jewelry itself was significantly overpriced and poor quality. Servicemembers were led to believe that they were investing in the Harris Program and the jewelry they purchased was a gift from Harris Jewelry. Rather, it was based on a servicemember’s branch of service, the amount of time they have remaining on the term of enlistment, and the category of merchandise they purchased. The credit advanced to servicemembers through what was called the Harris Program was not based on a consumers’ credit score, potential income, or other legitimate factors that banks consider. In addition, Harris Jewelry offered predatory lending contracts that were marketed to servicemembers as a way to build or improve their credit scores. Sometimes they were told all the proceeds would be donated, other times they were told only a portion would be donated. Moreover, consumers were often given varying and conflicting information about the amount donated to the charity. The OAG’s investigation found that no legal contract was actually signed between Harris Jewelry and Operation Troop Aid, Inc., which Harris claimed to support. A multi-state investigation led by New York found that local servicemembers were enticed into retail stores through a marketing scheme, dubbed “Operation Teddy Bear,” in which Harris Jewelry advertised teddy bears in military uniforms with promises of charitable donations. Their business model was designed to primarily target and service people in the military. Harris Jewelry, headquartered in Hauppauge, New York, operated retail stores near and on military bases around the country. We are grateful for their partnership in this case, which allowed us to deliver strong relief for servicemembers.” “The FTC is committed to working with state enforcers to halt unfair and deceptive business practices across the marketplace. “Today’s action against Harris Jewelry shows that companies that target our country’s servicemembers with false promises and deceptive sales practices will face serious consequences,” said Samuel Levine, director, FTC’s Bureau of Consumer Protection. Predatory lenders and businesses harming servicemembers should be warned that their actions will not be tolerated.” Our troops bravely put our protection above their own and deserve to be treated with integrity and respect. Today’s action will help thousands of servicemembers get back on their feet after falling victim to Harris Jewelry’s schemes. My office joined forces with FTC and 17 other states to protect servicemembers from Harris Jewelry and combat their predatory practices. For years, Harris Jewelry misled military members and saddled them with thousands of dollars of debt. “Harris Jewelry claimed to serve and support our troops, but its business practices were entirely self-serving. “It’s abhorrent that Harris Jewelry built their business by taking advantage of young servicemembers risking their lives to protect our country,” said Attorney General James. Today’s agreement resolves an earlier lawsuit filed by the Office of the Attorney General (OAG) against Harris Jewelry and its principals for these deceptive business practices. This agreement also requires Harris Jewelry to pay $1 million to all 18 states. Attorney General James and FTC co-led an 18-state agreement that requires Harris Jewelry to refund tens of thousands of servicemembers for warranties they were tricked into purchasing, to stop collecting millions of dollars of debt, to correct bad credit scores, and to dissolve all its businesses. Instead, servicemembers were tricked into obtaining high-interest loans on overpriced, poor-quality jewelry that saddled them with thousands of dollars of debt and worsened their credit. The company used deceptive marketing tactics to lure active-duty servicemembers to their financing program, falsely claiming that investing in this program would improve servicemembers’ credit scores. NEW YORK – New York Attorney General Letitia James and the Federal Trade Commission (FTC) today recovered $34.2 million for more than 46,000 servicemembers and veterans who were deceived and defrauded by national jewelry retailer, Harris Jewelry. Harris Jewelry Required to Provide Refunds, Stop Collecting Debt, and Correctīad Credit Scores for More Than 46,000 Servicemembers and Veterans Nationwide
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