On November 18, the FTC announced that a federal court has ordered a jewelry company to reopen its claims process and notify consumers, primarily active duty servicemembers, to submit refund claims. This follows from the company’s settlement with the FTC and a multistate group led by the New York Attorney General’s Office. As previously covered by InfoBytes, the FTC alleged that the defendants violated TILA, the FTC’s “Holder Rule,” and the EFTA, among other things, by: (i) making false or unsubstantiated claims that financing jewelry purchases through the company would result in higher credit scores; (ii) misrepresenting that the protection plan was required to finance purchases; and (iii) failing to provide clear written disclosures and meet authorization requirements for contracts.

The company was ordered to cease debt collections, provide refunds for protection plans, issue refunds for overpayments, and help remove negative credit entries. The claims process is now available from November 18 to December 21. Consumers are urged to request refunds via the company’s website promptly if they purchased items from the company, paid for a lifetime jewelry and watch protection plan, those who have not received a response to their previous claims, and those who have not yet filed a claim. The company must also complete its shutdown and dissolve after fulfilling its obligations under the settlement with the FTC.