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Tuesday, April 7, 2020

Parent company of Kay, Jared agree to $11 million settlement for signing up customers for store credit cards

State AG

By Marian Johns | Jan 24, 2019

Jewels

NEW YORK (Legal Newsline) — Sterling Jewelers, DBA Kay Jewelers, Jared and The Galleria of Jewelry, has agreed to an $11 million settlement with the State of New York to resolve charges of signing customers up for store credit cards and credit insurance products without their consent. 

According to the New York State Attorney General's Office, Sterling enrolled its customers from the approximately 130 stores throughout New York in the credit insurance and for store credit cards in addition to deceiving customers about the store credit card terms.  The company required employees to reach quotas on the store credit card enrollments and employees gained customers' personal information by telling them they were being signed up for a "rewards program," the Attorney General's Office said. 

“By tricking consumers into enrolling in store credits cards, Sterling Jewelers betrayed customers’ trust and violated the law,” New York State Attorney General Letitia James said in a statement.  “This settlement holds the company accountable for its misconduct and ensures that no more consumers are deceived.”

Sterling, based in Ohio, has about 1,500 jewelry stores across the U.S., according to James' Office. 

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Organizations in this Story

State of New YorkSterling Jewelers, Inc