Penalty Amount
$1,000,000
Consumers Affected
46,204
Harris Jewelry defrauded servicemembers with deceptive marketing, inflated prices, and hidden fees. A multistate settlement requires $34.2 million in refunds and debt relief, stops debt collection, and dissolves the business, affecting over 46,000 servicemembers.
Harris Jewelry must pay $1 million to states, stop collecting $21.3 million in debt, provide $12.9 million in refunds for protection plans, vacate judgments, delete negative credit entries, and dissolve all businesses. An independent monitor will oversee the relief process.
In-house legal teams should scrutinize customer financing agreements, warranty sales contracts, and any third-party financing partner agreements for clauses that permit deceptive marketing representations (e.g., false promises of credit improvement or charitable ties), ambiguous pricing structures that enable inflation, and hidden fee disclosures. Specific attention must be paid to compliance with the Military Lending Act, including APR caps and clear disclosure requirements for servicemember borrowers. Contracts may require amendments to add unambiguous, prominent disclosures about total costs, the non-impact on credit scores from 'investment' programs, and explicit opt-out mechanisms for warranties. Debt collection and credit reporting clauses must be revised to ensure immediate cessation of collection efforts and mandatory credit score correction processes for affected servicemembers.
Entity
Harris Jewelry
Industry
Retail$34.0M
Connecticut Attorney General announced a $34 million multistate settlement with Harris Jewelry for deceptive marketing and false promises to servicemembers, tricking them into high-interest loans for overpriced jewelry, with refunds and debt relief for affected consumers.
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.