CrimeJul 26, 2022
Suspects Wanted in Arizona Jewelry Store Shooting Apprehended CrimeJul 26, 2022
Harris Jewelry to Pay Millions in Predatory Lending Settlement
The jeweler is accused of defrauding thousands of U.S. military members.
Accused of defrauding U.S. service members through predatory lending practices, Harris Jewelry will pay more than $34 million in a settlement deal announced last week by the Federal Trade Commission and 18 state attorneys general. (Image courtesy of Harris Jewelry’s Facebook page)
Hauppauge, N.Y.—Harris Jewelry will have to pay millions in refunds to customers and stop collecting on loans following a settlement deal announced last week by the Federal Trade Commission and 18 state attorneys general.
The Hauppauge, New York-based retailer, which catered to members of the military and their families, was the focus of an October 2018 complaint from the New York State Attorney General’s office.
The lawsuit alleged the retailer marked up its jewelry between 600 and 1,000 percent and misled service members so they would sign financing agreements with high interest rates.
Similar complaints were made in 17 other states.
The settlement, which extends to all 18 states, requires Harris Jewelry to issue $12.9 million in refunds to more than 46,200 customers who were said to unknowingly have paid for supposedly optional “lifetime protection plans.”
The retailer will also have to cease collections on $21.3 million in loans currently held by more than 13,400 customers.
When customers fell behind on payments, Harris Jewelry reported them to credit agencies, according to the attorney general’s office. Now, under the terms of the settlement, the company will also have to vacate judgments against 112 consumers, totaling more than $115,300, and delete any negative credit entries.
“The settlement, in which Harris Jewelry neither admitted nor denied the allegations, resolves these matters in the best interest of all its stakeholders,” Harris Jewelry said in a statement.
The settlement also requires Harris Jewelry to pay $1 million in total to the 18 states.
New York will receive $150,000, which Attorney General Letitia James will donate to Fort Drum, the largest military base in New York, and the site of a former Harris Jewelry store.
“It’s abhorrent that Harris Jewelry built their business by taking advantage of young servicemembers risking their lives to protect our country,” James said.
“Harris Jewelry claimed to serve and support our troops, but its business practices were entirely self-serving. For years, Harris Jewelry misled military members and saddled them with thousands of dollars of debt.”
The now-shuttered retailer operated on and near U.S. military bases. It closed all of its stores in May 2021 in the wake of the COVID-19 pandemic but still has an online presence.
James’ office said Harris Jewelry violated the FTC Act, the Truth in Lending Act, the Electronic Fund Transfer Act, the Military Lending Act, the Holder Rule, and state laws in connection with jewelry sales and financing to members of the military.
There are three main accusations against the jeweler.
The company is accused of falsely telling customers that financing jewelry through the company would boost their credit scores, which was not true in most cases.
The credit was advanced through the “Harris Program,” an in-house financing plan. While banks usually consider a person’s credit score, income, and other factors, the Harris Program allegedly looked at a servicemember’s branch of service, the amount of time they had remaining on the term of enlistment, and the category of merchandise they purchased.
Harris Jewelry is also accused of misrepresenting its protection plans, claiming in several instances that protection plans were required to finance a purchase when it was actually optional.
Protection plans ranging in price from $40 to $350 were also said to be routinely added to customers’ bills without disclosure. In some cases, the cost of the protection plan allegedly surpassed the wholesale cost of the jewelry.
Lastly, the company allegedly did not provide written disclosures in its retail installment contracts or meet the authorization requirements for contracts required by law.
Its internet and print ads also did not include the required disclosures, as per the Truth in Lending Act, James’ office said.
In addition to these main accusations, the company was also said to sell low-quality goods.
“The jewelry itself was significantly overpriced and poor quality,” said James’ office. “The jewelry was not worth the price, and consumers often reported stones falling out, chains breaking, and the finish fading.”
Harris Jewelry was also accused of using a fake charity drive to draw in customers.
The stores ran an “Operation Teddy Bear” promotion, selling teddy bears dressed in military uniforms, claiming the proceeds would go to Operation Troop Aid, a charity that would send care packages to military members deployed overseas.
The OAG’s investigation found there was no legal contract between Harris Jewelry and Operation Troop Aid.
Operation Troop Aid shut down in July 2018 following an investigation by the FTC and the National Association of State Charity Officials, which looks into charities suspected of falsely claiming to support servicemembers and veterans.
“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 of the FTC’s Bureau of Consumer Protection.
Servicemembers and veterans who entered into predatory financing loans with Harris Jewelry, starting in January 2014, will be eligible for restitution.
Those eligible will receive an email and a letter in the mail with a notification about the agreement.
Attorney General James and the FTC were joined in the agreement by the attorneys general of California, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Nevada, North Carolina, Pennsylvania, Virginia, Washington, and Hawaii's Office of Consumer Protection.
Editors' Picks
Sponsored by
CrimeJul 19, 2022
Nehal Modi Convicted of Grand Larceny
IndependentsMay 06, 2021
Harris Jewelry Closes All LocationsMore on Crime
The Latest
TrendsMay 13, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
ColumnistsMay 12, 2026
It’s Official: We’re Getting ‘Brain Rot’ From Watching Short-Form Videos Peter Smith gives tips on leading meetings, developing marketing, and making trade show appointments in the age of short attention spans.
CollectionsMay 12, 2026
Jessica McCormack Debuts Antique Coin-Inspired Medallions for SummerThe 11-piece “Medallions” capsule collection features five motifs: a crying eye, a heart on fire, a spiral, a flower, and a swallow.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
IndependentsMay 12, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodayFrom Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.
Weekly QuizMay 07, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsMay 12, 2026
The Tiffany & Co. x CFDA Jewelry Designer Award Is BackThe partners have announced the second cycle of the program, which has expanded to include a $25,000 student scholarship.
IndependentsMay 11, 2026
Kansas Jeweler Closing After 70 YearsThe owners of Staats Jewelers are heading into retirement.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
TrendsMay 11, 2026
Former Macy’s CEO Joins Signet Jewelers BoardJeffrey Gennette, who retired in 2024 after 41 years with Macy’s, is the newest member of the jewelry retailer’s board of directors.
TrendsMay 11, 2026
Amanda’s Style File: Lucky May May babies are lucky to have emeralds, a gemstone admired for centuries, as their birthstone, writes Amanda Gizzi.
TechnologyMay 11, 2026
Clientbook’s New Tool Helps Jewelers Plan In-Store EventsThe new module allows retailers to plan, promote, and measure the success of events from a single dashboard.
Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
SourcingMay 08, 2026
Ronnie VanderLinden Takes Over as WDC President The diamantaire and industry leader succeeds Feriel Zerouki and said he will focus on being a “champion” for natural diamonds.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
FinancialsMay 07, 2026
Brilliant Earth Appeals to Higher-Income Shoppers in Q1The jewelry retailer noted resilience among its higher-end customers while demand softened for its lower-priced offerings.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
WatchesMay 07, 2026
Chrono24 Names New CEOJosé Gaztelu has been promoted to the role, which has been vacant since last year.
Events & AwardsMay 07, 2026
JA Accepting Applications for 2026 Scholarship ProgramIt has also opened the application period for the Seymour & Evelyn Holtzman Bench Scholarship through June 30.
SourcingMay 06, 2026
Canada’s Oldest Diamond Mine Faces Uncertain FutureThe owner of the Ekati mine, which opened in 1998, has filed for insolvency protection amid the significant decline in diamond prices.
FinancialsMay 06, 2026
Pandora to Add Carbon Footprint Info to Lab-Grown DiamondsThe company announced the change alongside its Q1 results, which showed that the jewelry brand’s year is off to a shaky start.
MajorsMay 06, 2026
Saks Global Begins Layoffs, Reorganization Plans Closer to ApprovalThe retailer will cut 16 percent of its corporate workforce as part of its plan to exit bankruptcy.
AuctionsMay 06, 2026
Steve McQueen’s Heuer Monaco Watch Heads to Sotheby'sOf the many examples used in the filming of “Le Mans,” this one is believed to have spent the most time on Steve McQueen’s wrist.
EditorsMay 05, 2026
This Ohio Designer’s Jewelry Made It to the Met GalaMegan Piccione dressed Lauren Wasser in layers of diamond jewelry, making her stand out in a crowd that included celebrities like Beyoncé.
SourcingMay 05, 2026
Doug Hucker Returns to His RootsFollowing decades of association leadership, the “semi-retired” colored gemstone expert is turning his focus to gemstone education.
Events & AwardsMay 05, 2026
AMNH to Showcase Famous Jewelry, Trophies in Sports HistoryThe museum’s new exhibition will feature one of Jesse Owen’s Olympic medals, Yogi Berra’s crown, Super Bowl rings, and more.
