AG James secured nearly $4.4 million form a gist card company, Card Complaint LLC (Card Compliant) for knowingly helping popular fashion retailer H&M keep millions of dollars in New Yorkers’ unused gift card funds, in violation of New York law. For years, H&M withheld New Yorkers’ unused balances on their gift cards that should have been available to claim through the state’s Office of Unclaimed Funds. H&M used an agreement with Card Compliant to make it appear that Card Compliant, as an out-of-state company, was handling H&M’s gift card business and therefore was not required to transfer the unredeemed balances to the state. In reality, H&M continued to manage its own gift card business and was required by law to turn over unused balances. In May 2022, AG James secured more than $36 million from H&M that it had wrongly withheld. As a result of the settlement announced today with the Office of the Attorney General (OAG), Card Compliant will pay nearly $4.4 million to the state.

“Consumers should know that when they buy gift cards, the money on the card belongs to them. For years, Card Compliant and H&M knowingly disregarded the law and lied to the state and consumers, lining their own pockets with gift card funds that belonged to New Yorkers. My office will continue to protect New Yorkers’ wallets and go after any company that attempts to cheat them.”- AG James

https://ag.ny.gov/press-release/2024/attorney-general-james-secures-nearly-44-million-gift-card-company-helping-hm