H&M Agrees to a $36 Million Unused Gift Card Settlement
The New York Attorney General’s Office has reportedly recovered $36 million from clothing retailer H&M after the company retained millions of dollars in unused gift card funds that should have been transferred to the state.
The settlement resolves allegations that H&M repeatedly lied about transferring the funds and knowingly concealed efforts to violate state law, Attorney General Letitia James said Thursday. The retail company kept the money in its bank accounts rather than transferring it to the New York Office of Unclaimed Funds, violating a state law that requires issuers to turn over unused balances of gift cards that were sold over five years ago.
“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 statement. “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. New Yorkers can trust that my office will always stand up to unscrupulous companies and hold them accountable.”
