Majors

Harris Jewelry Ordered to Reopen Claims Portal for Refund Requests

MajorsNov 21, 2024

Harris Jewelry Ordered to Reopen Claims Portal for Refund Requests

A federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.

Harris Jewelry storefront
A federal court has ordered Harris Jewelry to restore its website to accept refund requests from the customers it is accused of defrauding. Claims made by eligible customers will be processed now through Dec. 21.
New York—Harris Jewelry, the now-closed retailer that reached a settlement in 2022 after it was accused of cheating customers, has been ordered by a federal court to restore its website and reopen its claims process to allow customers to submit refund requests.

Founded in 1955 by U.S. Marine and World War II veteran Jerome L. Harris, Harris Jewelry had stores on and near military bases nationwide, meaning many of its customers were active duty servicemembers.

In July 2022, the Federal Trade Commission and a group of 18 states led by the New York Attorney General’s Office took legal action against the retailer, accusing it of cheating its customers through illegal financing and sales practices.

The complaint claimed that the New York-based jeweler took advantage of its customers by telling them that financing jewelry through the company would boost their credit scores, which was not true in most cases; telling customers they had to purchase the store’s Lifetime Jewelry and Watch Protection Plan in order to finance their purchase, which was not the case; and routinely adding protection plans costing between $40 and $350 to customers’ bills without disclosure.
 
These alleged actions violated several financial consumer protection laws, including the Military Lending Act.

Earlier this week, the court found Harris Jewelry violated the settlement by prematurely shutting down the claims portal, according to an FTC press release.

The new claims process will be open for 33 days, from Nov. 18 through Dec. 21.

The court’s action is meant to provide consumers “fair and sufficient time” to file claims for refunds. 

Harris Jewelry also will have to renotify customers about the option to request a refund, the FTC said.

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The FTC is encouraging consumers who purchased items from Harris Jewelry and paid for a protection plan and have yet to file a claim, or who have filed a claim but have not yet heard back, to request a refund via the Harris Jewelry website as soon as possible.

Harris Jewelry neither admitted nor denied the allegations but did agree under the settlement to issue refunds, which could total $10.9 million, to more than 46,000 customers who unknowingly paid for a warranty for their jewelry.

In addition to providing these refunds, the jeweler was ordered by the FTC to stop collecting millions of dollars in debt, issue refunds for overpayments, and assist with the deletion of any negative credit entries pertaining to debt in consumers’ credit reporting files.

As part of the settlement, the jeweler also had to entirely shut down its business.

It closed all 18 of its stores in the spring of 2021 and said it was moving its business online, citing declining sales due to the COVID-19 pandemic.

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