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H&M Unused Gift Card Funds Settlement Overview:
- Who: H&M has agreed to a $36 million settlement with the state of New York.
- Why: The settlement was made to resolve claims made by New York Attorney General Letitia James that H&M unlawfully kept millions of dollars in unused gift card funds.
- Where: The settlement involves New York consumers.
H&M has agreed to pay $36 million to resolve claims it unlawfully kept millions of dollars in unused gift card funds.
The agreement was made with the office of New York Attorney General Letitia James and includes damages and penalties recovered by the state and restitution to the Abandoned Property Fund.
The settlement is being divided into two portions, with just over $28 million going to the state and around $7.7 million going to the relator, the person who brought the case on behalf of the government.
“My office has zero tolerance for companies that disregard the law and line their pockets with money that belongs to hardworking people,” James said in a May 19 news release.
H&M agreed to the settlement in order to end allegations it lied to the state on multiple occasions about its failure to transfer unused gift card balances to the Office of Unclaimed Funds, as required.
Further, H&M was accused of lying to the state by falsely claiming that a company outside of New York was in charge of handling the gift card aspect of its business.
H&M ‘Lied to State,’ James Says
“For years, not only did H&M illegally keep unused gift card money that customers paid for, but they then lied about it to the state. Violating the law is not trendy or tolerable, and today H&M will pay millions of dollars for its wrongdoing,” James said.
Businesses which offer gift cards are required by New York law to turn over any unused funds to the state’s Abandoned Property Fund.
The agreement will also allow New York consumers with unused balances on an H&M gift card to recover the funds by contacting the state’s Office of Unclaimed Funds.
“The Comptroller’s Office of Unclaimed Funds stands at the ready to assist those who have money coming to them,” New York State Comptroller Tom DiNapoli said.
The Office of the Attorney General opened an investigation into H&M following a lawsuit filed by a whistleblower who claimed the company was in violation of the New York False Claims Act.
This is not the first time H&M has faced legal issues. The company agreed to pay $3.8 million in March 2020 in order to resolve claims it failed to pay for off-the-clock work.
Have you purchased or been given an H&M gift card? Let us know in the comments!
The state of New York is represented by New York Attorney General Letitia James.
The H&M Unused Gift Card Funds Lawsuit is State of New York v. H&M Hennes & Mauritz LP, et al., Index No. 101101/2016, in the Supreme Court of the State of New York.
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90 thoughts onH&M to Pay $36M to Settle Claims It Unlawfully Kept Money in Unused Gift Cards
Yes add me please
I wrote the bbb about this I had a 40% off coupon used in Lombard Illinois Yorktown mall and they said the discounted money would go on a gift card but I said can I have the gift card of $167 no they said then I said what’s the point you telling me you’re outrightly outrageously stealing from me a federal fema officer and they said because it looked like my first time on the store
Add me please
Me too
add me
Please add me. My kids gave me their partial used gift cards. When I went to use them I was told there was no money left on them. They said there was definitely money left or they would have had the cashier throw them out.