Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 1 of 56 PageID #: 1 

UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF NEW YORK 

FEDERAL TRADE COMMISSION; THE Case No. 22-cv-4260

ATTORNEYS GENERAL OF THE STATES OF 

CONNECTICUT, DELAWARE, FLORIDA, COMPLAINT FOR 

GEORGIA, IDAHO, ILLINOIS, IOWA, PERMANENT 

KANSAS, LOUISIANA, MARYLAND, INJUNCTION, MONETARY 

NEVADA, NEW YORK, NORTH CAROLINA, RELIEF, AND OTHER 

AND WASHINGTON; THE PEOPLE OF THE RELIEF 

STATE OF CALIFORNIA; THE 

COMMONWEALTHS OF PENNSYLVANIA 

AND VIRGINIA; AND THE HAWAII OFFICE 

OF CONSUMER PROTECTION, 

Plaintiffs 

v. 

HARRIS ORIGINALS OF NY, INC., a 

corporation, 

CONSUMER ADJUSTMENT CORP. USA, a 

corporation, 

CONSUMER ADJUSTMENT CORP., a 

corporation, 

800 PRIME PLACE PROPERTIES LLC, a 

corporation, 

Defendants. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 2 of 56 PageID #: 2 

Plaintiffs, the Federal Trade Commission (“FTC”), the Attorneys General of the states 

of Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, 

Maryland, Nevada, New York, North Carolina; and Washington; the People of the State of 

California; the Commonwealths of Pennsylvania and Virginia; and the Hawaii Office of 

Consumer Protection (collectively “Plaintiffs”) for their Complaint allege: 

1. The FTC brings this action under Sections 13(b) and 19 of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 53(b) and 57b; the Truth in Lending Act 

(“TILA”), 15 U.S.C. §§ 1601-1666j; the Electronic Fund Transfer Act (“EFTA”), 15 U.S.C. 

§§ 1693-1693r; the Military Lending Act (“MLA”), 10 U.S.C. § 987; and the Trade 

Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses (“Holder 

Rule”), 16 C.F.R. Part 433, which authorizes the FTC to seek, and the Court to order, 

permanent injunctive relief, rescission or reformation of contracts, the refund of monies paid, 

restitution, disgorgement of ill-gotten monies, and other relief for Defendants’ acts or 

practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a); TILA and its 

implementing Regulation Z, 12 C.F.R. Part 1026; EFTA and its implementing Regulation E, 

12 C.F.R. Part 1005; the MLA and the Department of Defense implementing regulation 

(“DoD Regulation”), 32 C.F.R. Part 232; and the Holder Rule, 16 C.F.R. Part 433, in 

connection with the offer, sale, and financing of jewelry, watches, military-themed gifts, and 

ancillary products. 

2. This action is also brought, in their representative and official capacities as 

provided by state law, by the Attorneys General of Connecticut, Delaware, Florida, Georgia, 

Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Nevada, New York, North Carolina, 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 3 of 56 PageID #: 3 

Pennsylvania, Virginia, and Washington; the People of the State of California; and the 

Hawaii Office of Consumer Protection (collectively the “State Attorneys General”).1 

3. The State Attorneys General bring this action pursuant to consumer 

protection and/or business regulation enforcement authority conferred on their attorneys 

general and/or state agencies by state law or pursuant to parens patriae or common law 

authority. These state laws authorize the State Attorneys General to seek temporary, 

preliminary, and permanent injunctive relief, rescission or reformation of contracts, 

restitution, the refund of monies paid, disgorgement of ill-gotten monies, and other equitable 

relief, to stop ongoing fraud, deception, and/or unfair practices caused by Defendants’ state 

law violations. These laws also authorize the State Attorneys General obtain civil penalties, 

attorneys’ fees, expenses, and costs. 

SUMMARY OF CASE 

4. Harris Originals of New York, Consumer Adjustment Corp., USA, Consumer 

Adjustment Corp., and 800 Prime Place Properties LLC (collectively the “Defendants”) sell 

military-themed gifts, jewelry, and watches at retail stores across the country, all located on 

or near military bases. Nearly all of Defendants’ sales are made through credit sale 

transactions that Defendants finance. Defendants extend credit to active duty service 

members with more than nine months remaining before their discharge date, National 

Guardsmen, Reservists, and medically discharged service members. 

5. Defendants target their advertising, sales pitch, merchandise, pricing, and 

financing at active duty service members. The central theme of Defendants’ sales pitch is that 

1 Hawaii is represented in this matter by its Office of Consumer Protection, which is not part of the state Attorney General’s Office, 

but is statutorily authorized to undertake consumer protection functions, including legal representation of the State of Hawaii. For 

simplicity, the entire group is referred to herein as “State Attorneys General,” or individually as “Attorney General,” and such 

designation, as it pertains to Hawaii, includes the Executive Director of the State of Hawaii Office of Consumer Protection. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 4 of 56 PageID #: 4 

purchasing from them on credit will, regardless of service members’ credit history or 

subsequent borrowing or payment activity, improve service members’ credit scores, setting 

service members up to save thousands of dollars on car loans and obtain military promotions. 

Defendants’ representations, however, are misleading, false, or unsubstantiated. 

6. In numerous instances and despite that it is optional, Defendants unilaterally 

add protection plans to service members’ retail installment sales contracts, treating the 

protection plan as required or as a component of the contract rather than an optional add-on 

product. 

7. Since January 1, 2016, Defendants entered into retail installment contracts 

with over 40,000 service members. 

JURISDICTION AND VENUE 

8. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 

1337(a), and 1345. This Court has supplemental jurisdiction over the subject matter of state 

law claims pursuant to 28 U.S.C. § 1367. 

9. Venue is proper in this District under 28 U.S.C. §§ 1391(b)(1), (b)(2), b(3), 

(c)(1), (c)(2), and (d), and 15 U.S.C. § 53(b). 

PLAINTIFFS 

10. The FTC is an independent agency of the United States Government created 

by the FTC Act, which authorizes the FTC to commence this district civil action by its own 

attorneys. 15. U.S.C. §§ 41–58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. The 

FTC also enforces TILA, 15 U.S.C. §§ 1601-1666j, which establishes, inter alia, disclosure 

and calculation requirements for consumer credit transactions and advertisements; EFTA, 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 5 of 56 PageID #: 5 

15 U.S.C. §§ 1693-1693r, which regulates electronic transfers to consumer accounts; MLA, 

10 U.S.C. § 987, which protects covered borrowers including active duty members of the 

military from certain credit practices; and the Holder Rule, 16 C.F.R. Part 433, which 

protects consumers entering into credit contracts. 

11. The State Attorneys General are the chief legal officers for their respective 

states and commonwealths. The State Attorneys General bring this action pursuant to 

consumer protection and/or business regulation enforcement authority conferred on their 

attorneys general and/or state agencies by state law and/or pursuant to parens patriae and/or 

common law authority. 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17200 et seq. and §§ 17500 et seq. 

Connecticut CONN. GEN. STAT. §§ 42-110a through 42-110q. 

Delaware Delaware Consumer Fraud Act, 6 Del. C. §§ 2511 et seq. 

Florida FLA. STAT. ch. 501, pt. II (2021). 

Georgia GA. CODE ANN. §§ 10-1-390 through 10-1-408 (2017). 

Hawaii HAW. REV. STAT. §§ 480-2, 480-3.1, 480-12, 480-15, 481A, 487-5, 487-14, 

487-15, and 487A-3. 

Idaho Idaho Consumer Protection Act, title 6, chapter 48, Idaho Code. 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE § 714.16. 

Kansas KAN. STAT. ANN. §§ 50-623 et seq. 

Louisiana Louisiana Unfair Trade Practices and Consumer Protection Law, LA. REV. 

STAT. ANN. §§ 51:1401 through 1428. 

Maryland MD. CODE ANN., COM. LAW §§ 13-101 through 13-501 (2013 Repl. Vol. 

and 2021 Supp.). 

Nevada NEV. REV. STAT. §§ 598.0915(15), 598.096, 

598.0963, and 598.0999. 

New York N.Y. EXEC. LAW § 63(12); N.Y. GEN. BUS. LAW §§ 349 and 350-d. 

North Carolina N.C. GEN. STAT. §§ 75-1.1, 75-14, 75-15.1, 75-15.2, and 75.16.1. 

Pennsylvania PA UTPCPL 73 P.S. §§ 201-1 through 201-9.2. 

Virginia VA. CODE ANN. §§ 59.1-196 through 59.1-207. 

Washington WASH. REV. CODE §§ 19.86, and 19.09, and 48.110. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 6 of 56 PageID #: 6 

DEFENDANTS 

12. Defendant Harris Originals of NY, Inc. (“HONY”), is a New York 

corporation with its principal place of business at 800 Prime Place, Hauppauge, NY 11788. 

HONY transacts or has transacted business in this District and throughout the United States, 

including in each state of the State Attorneys General. At all times relevant to this Complaint, 

acting alone or in concert with others, HONY advertised, marketed, distributed, sold, or 

financed the sale of jewelry, watches, military-themed gifts, and ancillary products. Each of 

Defendants’ retail stores is separately incorporated as a wholly owned subsidiary of HONY. 

13. Defendant Consumer Adjustment Corp. USA (“CAC USA”) is a New York 

corporation with its principal place of business at 800 Prime Place, Hauppauge, NY 11788. 

CAC USA transacts or has transacted business in this District and throughout the United 

States, including in each state of the State Attorneys General. At all times relevant to this 

Complaint, acting alone or in concert with others, CAC USA advertised, marketed, 

distributed, sold, financed, or purchased contracts for the financed sale of jewelry, watches, 

military-themed gifts, and ancillary products. CAC USA is named as the creditor in 

Defendants’ retail installment sales contracts. 

14. Defendant Consumer Adjustment Corp. (“CAC”) is a New York corporation 

with its principal place of business at 800 Prime Place, Hauppauge, NY 11788. CAC 

transacts or has transacted business in this District and throughout the United States, 

including in each state of the State Attorneys General. At all times relevant to this Complaint, 

acting alone or in concert with others, CAC advertised, marketed, distributed, sold, financed, 

or purchased contracts for the financed sale of jewelry, watches, military-themed gifts, and 

ancillary products. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 7 of 56 PageID #: 7 

15. Defendant 800 Prime Place Properties LLC (“800 Prime”) is a New York 

corporation with its principal place of business at 800 Prime Place, Hauppauge, NY 11788. 

800 Prime holds title to the real property where the Defendants’ headquarters are located. 800 

Prime transacts or has transacted business in this District and throughout the United States, 

including in each state of the State Attorneys General. At all times relevant to this Complaint, 

acting alone or in concert with others, 800 Prime advertised, marketed, distributed, sold, or 

financed the sale of jewelry, watches, military-themed gifts, and ancillary products. 

COMMON ENTERPRISE 

16. Defendants HONY, CAC USA, CAC, and 800 Prime, and their affiliates and 

subsidiaries (collectively “Defendants”) have operated as a common enterprise while 

engaging in the unfair, deceptive, and unlawful acts and practices alleged below. Defendants 

have common ownership, directors, officers, managers, business functions, employees, and 

office locations, and have commingled funds. Because these Defendants have operated as a 

common enterprise, each of them is liable for the acts and practices alleged below. 

COMMERCE 

17. At all times relevant to this Complaint, Defendants have maintained a 

substantial course of trade in or affecting commerce, as “commerce” is defined in Section 4 

of the FTC Act, 15 U.S.C. § 44. 

DEFENDANTS’ BUSINESS ACTIVITIES 

18. Defendants own and operate approximately 19 Harris Jewelry retail stores 

and do business nationwide. Two stores are located on military bases. The remaining stores 

are located near military bases in shopping malls with high service member traffic, or at 

kiosks in airports serving military bases. While Defendants make most of their sales in 

person at their retail stores, they also operate a website: www.harrisjewelry.com. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 8 of 56 PageID #: 8 

19. Defendants market and sell various military-themed gifts, jewelry, and 

watches. Defendants also sell a Jewelry and Watch Protection Plan (“Protection Plan”). 

20. Over 90 percent of Defendants’ sales are to service members in credit 

transactions that Defendants finance. 

21. Defendants extend financing through retail installment contracts. The retail 

installment contracts are financed, or purchased from other Defendants, by Defendants CAC 

USA and CAC. The retail installment contracts Defendants enter into with service members 

vary in duration but are typically 18 to 22 months long. The annual percentage rate (“APR”) 

is disclosed as 14.99 percent in all states but Colorado where it is disclosed as 11.99 percent. 

22. Defendants extend credit to active duty service members with more than nine 

months remaining before their discharge date, National Guardsmen, Reservists, and 

medically discharged service members. The amount of merchandise Defendants will sell on 

credit to an active duty service member depends on the service member’s branch and type of 

merchandise being purchased but ranges from $1,000 to $3,300. 

23. Defendants require downpayments from National Guardsmen, Reservists, 

medically discharged service members, and active duty service members unable to provide 

three references. 

24. Defendants tailor their merchandise and sales pitches to appeal to young 

service members in basic training at the lowest military pay grade. 

25. Defendants train their sales agents to “prospect” for active duty service 

members. According to Harris’s training materials, prospecting consists of stopping 

consumers as they walk past a Harris Jewelry store, determining whether they are in the 

military, and then finding out what branch they are in and when they will be discharged. 

26. Once the sales agent has determined a service member is active duty and has 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 9 of 56 PageID #: 9 

a sufficient amount of time remaining until their discharge date, the agent guides the service 

member into the store to begin the sales presentation. 

27. Defendants’ sales presentation consists of the sales agent leading the service 

member through an oral sales pitch that incorporates a 10-page presentation book. 

Defendants’ sales agents are required to know and communicate everything in the sales pitch 

and presentation book, and as part of their training, study and role play the sales pitch 

incorporating the entirety of the presentation book. 

28. The presentation book begins with representations about Harris’s 

commitment to the military and the purported benefits to service members of purchasing 

from Harris on credit. Photos of people in military uniform appear throughout the 

presentation book. 

Defendants’ Deceptive Credit Improvement Representations 

29. Defendants dedicate much of the initial presentation to describing the 

“Harris Program,” their in-store financing plan that they tout as a special credit improvement 

program for service members. The Defendants claim that the Harris Program will 

significantly improve service members’ credit scores and thereby lower the costs service 

members will pay to borrow in the future. Defendants make this claim without regard to 

service members’ credit history or potential future borrowing or payment actions. Defendants 

instruct sales agents to promote Defendants’ merchandise only after the “Harris Program” 

pitch is complete (see, e.g., Illustration 1 below). 

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~ ~ 

SERVING l)WSE V\'HO SERVE• www. _,_...,..,,.,. HarrisJewe__ lry.oom 

_ .. _. .... _....,..,, ... _ ....... ..,,~-'"'' ... .._ __ 1_,..,.,....._.,,.. __ ;o ___ 1'70 ... 

What Good Credit can do for YOU! ~ H,JifiJS-

~

~ 

-:.:-~ 

'Good' Credit '"'= $20,000 

..., 5yrs. I.O«IT~rm (SO M~ 

lntem;t Rale 6.0% • t= $387 

'Bad' or No Credit 

~~ S20,000 

- 5y,s, LD,in Tetm fOO MollNJ 

........ ~. 26.0%" =J $599 

PAYMENT DIFFERENCE 

$212 

INT= $3,199 I INT~lli S15,929 

INTEREST DIFFERENCE 

$12,730 "Mllllllintlll) ........ .-1211-t www.HarrisJewelry.com Cl):Ol _ _....,.,.,__,,._.wlj(1il, <w,.-..•----d---_-.,""'1,""'M1-.1t,1JI_Y..,,,_ ____ ~~-~n,------.1o.--

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 10 of 56 PageID #: 10 

Illustration 1: Page 5 of Defendants’ presentation book (in use until at least March 2018) 

30. Defendants instruct their sales agents to engage service members in a 

discussion of the kind of car the service member dreams of buying, and to tell service 

members that they will need good credit to purchase such a car. Until at least March 2018, 

the seventh page of the presentation book—which Defendants described to sales agents as 

“the most important page” in the book—shows that service members can save over $12,000 

in payments on a future car loan if they use the Harris Program (see Illustration 2 below). 

Illustration 2: Page 7 of Defendants’ presentation book (in use until at least March 2018) 

31. Defendants revised this page of the presentation book in or about March 

2018 to reflect a different amount of achievable savings (see Illustration 3 below). 

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Good Credit·can Help YOU! V H~~e~Js· 

EXAMPLE: 48 Month Used Auto Loan 

'Poor' or No Credit 'Good' Credit 

Autol.OanAmount $20,000 AutoLoanAlllount $20,000 

Interest Rate 16.806% .. Interest Rate 4.306%** 

Montll~ Payment $575 Montt>ly Payment $454 

PAYMENT DIFFERENCE 

$121/mo. 

'Poor' Credit 'Good' Credit 

~ 

~ 

• • TOTAi. llT!llEST $7,605 TOT'l INTEREST S1 ,808 

~ Total INTEREST DIFFERENCE $5,797 

'Hanis Jewelr)I ooe:s not promise or ~ arantee that the Harris~m win lml)l'O't'e yolK aeait or cause you 10 obta~ a tuue loan that has more favorabte intefest rates or olhef toan tetms that coo Id result from having improyed a edit 

~-.Cfl ..... ~IO~ 

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C(lt,lf"IO(NTIAL 

O Instant Credit Approval up to $2,500 

for All Active Duty Military• 

O Convenient and Reasonable Payment Terms 

O Easy Payment by Electronic Funds Transfer 

or Debit Card 

O Reported to ALL Major Credit Bureaus: 

EQ.UIFAX experirur '1 •sUnion. 

0 GOOD CREDIT - As long as ALL payments 

are made on time! 

www.HarrisJewehy.com 

_,._ ,0.-.. .......... --. , .. ,..._. "'""'-~" ...... ~ .................. 1,111:..rno._.., ___ ... 11 .... ~.---•..,·M!···-.....,·"""""" 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 11 of 56 PageID #: 11 

Illustration 3: Page 7 of Defendants’ presentation book (revised in March 2018 and still in use) 

32. Defendants instruct sales agents to tell service members that they also need 

good credit for military security clearances, and that bad credit can hinder military 

promotions and raises. 

33. The next page of the presentation book concludes with the statement: 

“GOOD CREDIT – As long as ALL payments are made on time!” (See Illustration 4 

below.) 

Illustration 4: Page 8 of Defendants’ presentation book (in use until at least March 2018) 

At this point, sales agents are instructed to tell service members—regardless of the service 

members’ current credit score, financial history, or potential subsequent borrowing or payment 

actions—that they will earn good credit as long as all payments to Defendants are made on 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 12 of 56 PageID #: 12 

time, that good credit can help service members’ “dreams come true,” that Defendants want to 

give every service member “an excellent credit rating,” and that Defendants can increase 

service members’ credit scores to “great.” 

34. Defendants have no reasonable basis for making these representations. 

Defendants do not take individual service members’ financial and credit history into 

consideration when they make these representations, nor do they know what financial 

choices a service member may make after entering into Defendants’ retail installment 

contract. Without knowing a service members’ current score, accurate credit history, and 

information on what financial choices a service member may make going forward, 

Defendants cannot accurately represent whether, or how much, a certain consumer’s credit 

score would improve, or what impact a change in credit score may have on interest rates for 

future credit purchases. Simply entering into a retail installment sales contract does not 

guarantee an increase in a consumer’s credit score and could actually result in a decrease. 

35. In addition, Defendants are aware that many service members do not make 

all payments on time. Defendants routinely report late or missed payments to credit reporting 

agencies, an action likely to result in a reduction of the associated service member’s credit 

score. Defendants also write off or sell millions of dollars of delinquent retail installment 

sales contracts each year and report these actions to credit reporting agencies. This, also, is 

likely to result in a reduction of the associated service member’s credit score. 

36. Defendants’ sales agents also represent that, because Defendants report to all 

three credit reporting agencies while many other creditors report to only one or two, entering 

into a retail installment sales contract with Defendants will result in a faster credit score 

increase than other lines of credit. In fact, the number of credit reporting agencies reported to 

does not influence the speed at which a consumer’s credit score changes. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 13 of 56 PageID #: 13 

37. Defendants also instruct sales agents to tell service members that “[h]aving 

no credit is the same as having poor credit,” which is untrue. Having no credit score means 

that a consumer’s credit history on file with the scoring bureau is insufficient or not recent 

enough to generate a score, while having a poor credit score can be the result of many 

different factors, including some history of delinquency. Having no, versus poor credit, 

would also have different implications for service members’ readiness to serve. 

38. Finally, Defendants train their sales agents to describe purchasing from 

Harris on credit as a smart financial decision. For instance, if a service member expresses 

concern about affording the purchase or buying on credit, sales agents are instructed to say 

that purchasing on credit from Defendants is a way for them to “plan[] for,” “invest in,” and 

“build” their financial future, that the Harris Program offers “amazing benefits,” and that 

service members “can’t afford not to do it.” 

39. In fact, for many service members, entering into a retail installment sales 

contract with Defendants has negative financial consequences. They find themselves 

obligated to make substantial payments over many months, which, among other things, in 

view of the additional debt and if payments are late or missed, can put their financial 

readiness and military readiness at risk with no notable benefit. As one service member told 

Defendants through Harris’s Facebook page: “I went to Harris jewelers to build up my credit 

[and] all I’ve got from y’all is bad credit. So much for ‘serving those who serve.’” 

40. On or around March 2018, Defendants added the following small-print 

disclaimer to the bottom of one page of their presentation book: “Harris Jewelry does not 

promise or guarantee that the Harris Program will improve your credit or cause you to obtain 

a future loan that has more favorable interest rates or other loan terms that could result from 

having improve credit.” (See Illustration 3 above.) This small-print disclosure, however, does 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 14 of 56 PageID #: 14 

not cure the deceptive net impression created by Defendants’ credit improvement 

representations. 

Defendants’ Unfair and Deceptive Protection Plan Sales Practices 

41. After a service member has agreed to purchase merchandise from 

Defendants, the sales agent hands the service member off to an in-store credit specialist who 

obtains various authorizations and prepares the retail installment sales contract. 

42. Defendants instruct credit specialists to, at the outset, add a Protection Plan 

to the retail installment contract for each piece of merchandise purchased without service 

members’ express informed consent. The price of the Protection Plan ranges from $39.99 to 

$349.99 depending on the cost of the item to which it applies, and covers ring and watch 

sizing, replacing watch batteries, and other jewelry and watch repairs. 

43. In numerous instances and despite that it is optional, Defendants instruct 

credit specialists to add protection plans to service members’ retail installment sales 

contracts, treating the protection plan as required or as a component of the contract, rather 

than an optional add-on product. Only if a service member questions inclusion of the 

Protection Plan and asks that it be removed is a Protection Plan not included in a retail 

installment sales contract. This happens infrequently, partly because many service members 

are rushed through the contract signing process. In some instances, service members are 

unaware that their retail installment sales contracts even include a Protection Plan. 

Defendants’ Failure to Provide TILA Disclosures in Advertisements 

44. Defendants advertise through direct mail, posters at military installations, in 

military print publications, and on their website. Defendants also purchase Facebook 

advertisements that appear on Facebook News Feeds and Instagram. Defendants’ 

advertisements assume credit purchases using Defendants’ in-house financing. 

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' 

l Wedding Band 

$66 pe, payday" 

$499 ~L[IIWOl!B1 

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DREss2Es 

by HARRIS" 

OIJR EXCLUSIVE COLLECTIOH 

""1 

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$699~1340 

YOUR CHOICE 

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$699 MI.F'MJ:5n 

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lo lllloreseen manufaclu'e,-delays. some ilefns may be temporariy u-. We wil offer compa,able 

sltlstitutions, ii available. 

Pricessubjed lo cllangewilhoutnotico due ti thewoi1d marl<elcondilionsoldiamonds, ~ . precious rnelals 

and 90.,.._,es. The price shown is the retail price. It does not include Sales T ox (req,nd 1n the lollowing stales: 

co, Ft, GA, IL, KS, NC, NY, TN, TX, VA, w~ snppin\yins<.rance/hardlilg, wanries Of l,mce charges, 

·&lhanced blad<diamondsMd moat-gemstones m,e been heattrealcd tiporm,nenlly croam Ile imnsc color. Enhanced blue liamonds llil\le been imllialed lo pem,anenlly exhibt Uieir inll,nse color. SaP11hires are commony enlllr<:ed II\' bealmenl5 std1 a, heating and difft.oion. 

SHIPPING & HANDLING- Oroers are slipp,:d UPS Groord (Oomesli;) or U.S. Postal SeNice Priority Mail (APM'POf. Orde!sare pro<essed forslli>f,ingooly ,pon receipt of complete wsbnerbillilg information Ring Saing ardS.,ecial Ortters 

may add addit1mal time until yoi.rmler e smpped. E1POOited 5hiR>ing eavaiable k,.., acldrtiora ile, burn ,.;1 rd reda 

ero=sing time ~red for Ring Sizi,g andSpe<iol Ord:ra We wil ma"8 CV"fJ ottorl ti aa;ommodale Hol.i..,1 and Special Occasions. 

RETURNS- Yoo can retum 'Pl jewelrj at,..,,, time willin 30daysof dale of original purchase (45days for APOlfPO -sses)k,a ltj refind, prnYided ~has mt beenalleredordamaged. Please cal 1-800-9!9-7732torrehm lllilil i"s:tru:tions or visit a sbe near )Oil 

EXCHANGES- A!Er 30 days, blA wi1llin 90 days of pt.rchase, you may exchat1ge yoc, ciamond jewety orly 

for~ <iarnood jewelrj i\em(sf of equal or great..- value, provided ~ Ills oot been altered or damaged, Mil1ary Appreciation Ois<:oools may mi be aP11hed lo an eJ«:harlge purchase at the level if ""I, used at lhe time of 

the ori9""1 purchase. Walotes ard items wilhout diarmnds ore ed.xfod. 

•ADVERTISED/ESTIMATED 'Per Payday' TWICE MONTHLY PAYMENTS- Es\inelld 'l'lr Pa'Jf»f' Pa),nefi (lv,N;e 

nmitjy)slnvnrclideseslirrw.a:IAnanceCho,ges(14.!8%Amuaf PmonlageRalt, 11i8%1nCDo~~eslimatedSalesTa,, 

a.Jewef,y & Wal:h l\otecticJ, Plan, c.,,,nt Sh~ &lmlng, and has been based on!M fdlowingM.elWd Mmlho/ Tennsj: 

Slarlng Adverllled Advertised Adverlsed Relail Eoding 

Rel.ail Mon\h~ Tl!ltnS1 

Swting 

Relai Eading Retail Monllily Terms' 

Slarling 

Relail Ending Retail MOftlhly Terms' 

~g S199 3 S750 $799 10 $1,400 S1,699 17 

S299 4 S800 S899 11 $1,700 Sl,999 18 $300 S399 5 S900 Sl,049 12 S2,000 S2,199 19 -

$400 $499 6 S1,050 S1,149 13 S2.200 $2,399 20 $500 $549 7 Sl,150 $1,249 14 S2,400 and up 21 $550 S699 8 Sl,250 Sl,300 15 $700 S749 9 S1,301 S1,399 16 

tftclJal payment and ler0'$ may 'IY'f based"' many facbs sucll as )Ol<l:>lal pu!thase, recent prchases (for e,$1ingaa;carrts), 

promo,u,al dis.wnts and, i:,r ldr,e IU/ Milar/ aocourf,, tilT.e ~ft ~ seMCO YOIJR PAYMBlT AMOUNT, AS wru. AS ANY DOWN PAYMENT RWUIREMEIIT, WILL BE GtVtN AT CREDJT APPROVAL See bebw l)r il!formabon 1)1 'How Your Paymem 

WI 8e Cak:ula!f<I.' 

HOW YOOR PAYMENT WILL BE CAUlJLATB>-Yru P.\>rihly P2'/ll1flt w,I be cattAated l.ei!YJ""' adal Tolal i'l.,diaseP.'!IIXl1t 

pl,sappica~e RnanceChi11!J0$(14.99%Annaaf Percentage Raio, 11.99%1n CDonlyjardSales Ta,, YourTclal Pl.rthasePmourt 

wil n:lude yw retal mercmncise lltal Oess il1Y pmmo\Jonal disccu1lsi a~ll<llal ron1)r0(1,CI pua,ases (s<.d1 as a Jewel,y & 

Willoh ProlcciJoo Pm .- R,":l Se~g) ard "'I Slippr,g & Ha~ chuye~ Fmna: Charges w• be calciAaltd md on h: T olal 

futlese Anwrt ard pr 'l'P"""d roonlNy "''""· Credrt Limits ard Monltly bms from 3 ll 17 - (b-approximale relai 

msm,ndi,o t,t,is "1 m $1,6991, 18 ID 20 ,1omho (b approona18 '"'1il merthadise ID1als from $1,700 ID S2,ll9). and 21 

Months (for approximate retal '"""""1ehe "1ab o,er S2,400f- wil be appro1,od ba>ed on ~ci,idLOI credrtwatt,iress. l'lltllases 

abM lte Cre<li IJmi till be made wiU1 a Down Pa),nent $100 lliiwn1111 moo\h~ hnns ($50 per payday)"' reqund on 

any new aoo011nl pllthase, 1<9anfless of the lotaf pun:llale. AU CREDIT PJR0tASES ARE SU8.lCT TO FIIAl AP!'ROYAL 

[ RING SIZER r~ ~ Hr~rr=a;n 

1 

RING SIZING- Cul oul ard remove rirg sire<. Frst half size up or oo,o,n is S25 per ring. each fKfditional half ,ue is S5 

per nng, Additional charges may be ir<:<ned k, more than 2 limes Ladies' slaooard m 7 and lllen'sstilldMd ~ze 10. 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 15 of 56 PageID #: 15 

Illustration 5: Pages 8 and 11 from the Defendants’ 2018 Holiday 18-page direct mail advertisement (smaller than actual size) 

45. Defendants’ print advertisements state a payment amount for multiple 

specific items of merchandise, such as $50 per payday for a pendant. Some of Defendants’ 

print advertisements include a table showing a hypothetical payment schedule using monthly 

payments (see, e.g., Illustration 5 above (showing some, but not all, of the inaccurate or 

omitted disclosures contained in Defendants’ print advertisements)), which is located distant 

from the per payday payment offer. However, in numerous instances, Defendants’ print 

advertisements— whether or not they contain a table—fail to state or clearly and 

conspicuously state: (a) the amount or percentage of any downpayment (downpayments are 

required for National Guardsmen, Reservists, medically discharged service members, and 

Page 15 of 56 
 

 

 

 

 

 

 

AA Harris Jewelry 'W Sponsored (demo) • (f 

There's No Place Like Harris for the Holidays! SPECIAL FINANCING for 

Active Duty and for 2 DAYS ONLY take 20% Off your first purchase plus 

FREE Shipping! Use code: GIFT20 

Treat Her Like Your PRINCESS! 

Shop Now Shop Now 

$50 per payday HanisProd00021162_0001 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 16 of 56 PageID #: 16 

any active service member who cannot provide three references); (b) the repayment 

obligation over the full term of the financing; or (c) the annual percentage rate (“APR”), 

stated as such. Defendants’ print advertisements that contain a table also do not clearly refer 

from the amount of per payday payment to the page or location of the table. 

46. Defendants’ email advertisements also state payment amounts for specific 

items of merchandise. Defendants’ email advertisements do not state or clearly and 

conspicuously state: (a) the amount or percentage of any downpayment; (b) the repayment 

obligation over the full term of the financing; or (c) the APR, stated as such. 

Illustration 6: Example of Defendants’ Facebook advertisements (not actual size) 

47. Defendants’ Facebook advertisements also set out a payment amount 

without stating or clearly and conspicuously stating: (a) the amount or percentage of any 

downpayment; (b) the repayment obligation over the full term of the financing; or (c) the 

APR, stated as such (see, e.g., Illustration 6 above). 

Page 16 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 17 of 56 PageID #: 17 

48. Advertisements on Defendants’ website set forth payment amounts for items 

of merchandise on numerous pages. A separate page of the website, distant from the 

promoted payments, contains a table showing a hypothetical payment schedule. However, 

that schedule does not state or clearly and conspicuously state: (a) the amount or percentage 

of any downpayment, (b) the repayment obligation over the full term of the financing, or (c) 

the APR, stated as such. The product pages where the amount of payments is set out do not 

show the other credit terms of the offer, such as the downpayment, full terms of repayment 

and APR, nor do they clearly refer to the page or location of the table. 

49. Defendants’ website also advertises an interest rate, but fails to state that rate 

as an APR. 

Defendants’ Failure to Comply with TILA and EFTA 

50. Defendants do not provide all mandated TILA disclosures in the closed-end 

retail installment sales contracts they use. 

51. When a service member makes a credit purchase from Defendants, they 

initially enter into a retail installment sales contract with HONY or one of HONY’s wholly 

owned subsidiaries. HONY or the subsidiary then immediately assigns the contract to CAC 

USA, as indicated with statements in the retail installment sales contracts such as the 

following: “It is hereby mutually agreed that this account will be assigned for collection to 

Consumer Adjustment Corp. USA and that all payments are to be made to them.” However, 

Defendants’ retail installment sales contracts incorrectly list CAC USA, rather than HONY or 

its wholly owned subsidiary, as the initial creditor, and fail to make the disclosure of the 

initial creditor clear and conspicuous. 

52. Defendants’ retail installment sales contracts also fail to state the terms 

required for the “Itemization of Amount Financed” and to separate the “Itemization of 

Page 17 of 56 
 

 

ll<IUH 

•502 S 

·= BUYER. Mlintl 

c., • .,,. Unit: 

liii .. Stat ..: 

Mtf a>N1 .t.:IHED ON IIORE TMAN OHE PAGE 

RETAIL INSTALLMENT CONTRACT 

CAEDITOR: 

b'l'hm '"'be OCIIO,lto, YM 8e Pa,atte 

CONC\.IUCR A.DIUaTNENTCORPli&& 

p P~ Praot, Mlluc,,il'-O'J NV 11788 

TOI (eool 9$H T» 

,2.3Sl1P!r.t 

~ ...... U;Np<I ..... ITFNIZATION OF THE All10UNT F'WANCED "' ,.,. 

fCOUW-121)61 10K'WRDOIAMONOWOJ 

TOTAl CAS ~ OF MERCKAHOIU 

BALANCE OF CASt-1 CtUVERE.O 

l\::NT ~~ 

..... Moel( o-n OI Ul&VtNiOAIW<CE C>WtOU 

Gt l"OT 01:NILEO) 1' IQ ' ,-,tJJriUAl PE.RCENTAG~ RATE 

TOTAL Ot :'t"Ml:t-lTS (OEFERREO PAn, eNT) 

p 

ARE CONT~ ON lll0R£ TMA.11 ONE PACI. •~ r,... 7,- o., ....,,,, 

AC 

2T1393 

e;,,oo 

ODO 

2241J.l 

~not 

a.e2, 2 

33, ... 

2Q5i110S 

... 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 18 of 56 PageID #: 18 

Amount Financed” from other terms and information, as required by TILA, intermingling 

other credit terms, such as the finance charge, APR, and total of payments. (See, e.g., 

Illustration 7 below.) 

Illustration 7: Example first page of Defendants’ retail installment sales contract (smaller than actual size) 

Page 18 of 56 
 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 19 of 56 PageID #: 19 

53. Defendants collect payments from service members by electronic fund 

transfers, including debit cards and ACH payments, among other methods. Most of the 

electronic fund transfer preauthorizations Defendants obtain from service members provide 

for twice-monthly payments. This conflicts with the TILA payment schedule provided earlier 

in the retail installment sales contract, which provides for monthly payments (see, e.g., 

Illustration 8), making the TILA payment schedule disclosure in the retail installment sales 

contracts inaccurate and not clear and the terms of the electronic fund transfer 

preauthorization form neither clear nor readily understandable. In some instances, the 

preauthorizations also do not fully or correctly state the required payments (see, e.g., 

Illustration 9 below (note that, unlike most of Defendants’ preauthorizations, this example 

only has one of the twice-monthly payment blanks filled out)). 

Page 19 of 56 
 

14.99 

PINANCE 

(:i{Af{CI! 

1he CIO!la, •!T'OJint 

ete <nd't1 W'il ~ t 

,.. 

334,64 

Biryer'11 p• mont.achedul• '#\ill bo; 

19 

T ARF.COKTAlNEDONMORE~ONEPAGC 

A1111M1nt f inanced "TOUI 0, P•yrHnlS 

The ffllOU"lt~f The tll1'0l.lr,tyou vdl 

crfldll prowlfd10 na>,e paid 111Mry~ 

10'.J c:ir on roc.r ha'te ~de a:'I 

Nh•I! paymt,11tl .. 

SdleOU'l!kl. 

2,9SS.05 

rolai Sale Prk• 

TI'l~IOfaQOl(Ofyout 

purel\t .. o,,, coed~ 

n:1Lllfilg ¥CU aawn 

l)fl)'mtn!~S2$00 

3,A84.06 

1ss. 14 Y4»f rra oa,,iaut isa.te0?1m112019 

WA 

Uti. CHAR !;: A,i.te e113tgo1111il • IN, •Hos&eiton an-, inll::lllmct'i ~ nicnl Wni<"..11 IS ovemue ~ INn le!, l10}<13)'5. n .cnsmott1t w 1$ is: ftte (S) p,orc:ant cl tha If& i,c,yme,d<irl6.CIO, wl-'lc:t.;,.,trif \ht h,N•remoi.11l 

8lcururv: 0fJ •rt 91vi,.. a •urtty ln1t1re111. inltlegooltl t11U'i9 purCflaSea ro &eel.ft Iha pefbr:mal\Ce or:,ou, l)aJ'mMC 

bq._al!OM ~ lhi; ~L 

Pf.EPAYNf · Yoc lnl)' ~)'0Ufll101idba.l~• lll)'UMWChOul~•l:)t, Vou we.-mled to• p1m,1,-~ndl 

you111~~ ii:nanu ct:~ 

NDU ABII.I ' PERSONAL OR PROP(At'V lfll$UAAHC,E COVERAGE IS PAOVIOEO ro B0A.ROWERUND£R THIS 

RETAll INSTALLMENT CONTRACT 

Attf CON fAINfO ON NORE THAH ONE PAGE 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 20 of 56 PageID #: 20 

Illustration 8: Example second page from Defendants’ retail installment sales contracts (smaller than actual size) 

Page 20 of 56 
 

L 

i AAl!CONTAINED ONMORf THAN ONE PAGE. 

U

na· e)n 

,..,. • °'' 

TOI l"ree: 1 C300)9H•TI32 

Direct: (6:31) 348-0,303 

Emoll: c~ lttftH MCl@CAco,pUSA.com 

www.h1fri11ftwelry,oolff 

,WRRISxooim;fi. ---hcrcty rAq\/Oltl'A:t'lt C<Hp Val\:-:-,(C'.:-S".'"C) ,.,..- to eectra"llcaty t!lnSeT IJ!l<I$ lrom ff:lV SOCCllffil llt lJ'E f'eQ..fl'111(1 3ml 

I-5th w __ ,... of eHi,..- ,rent.en """'"IV pafOl't tl41Q;ll"lflif'l9 Slt!l2Gt0 

until rry acco ir; p,,<I In fun. f-tril:wy 1H)"da-f fell• Ori a t10~ Of W'Ot:Mlld, UM <lebll·•MIJ OQM'QO Ole 1MC: 0t!&ino ~y 

Pt«iteli:lg, ine S!(lf' 1 ~ If IIIJS ll'anuotlM ll dild(flfd 11)1' you, t»nk.. fl will ~ pt'll)CMh d l0r up lo cr,oti., 1 d~ fol)o,,.,~ 

lhc do:c nrtl it~. If ll"I• pityment i5 6til not~fONO.. t WIii be prgcesseo onv,.i: f'IC!lllt N)Wy, a:ong Nitti lhe 

pa)meru l"fPJ U'.hooll-2 t) b& ~CCllu«l at lhal M,Cl ~~•Y· r:,:;----:----:-----:-, ~ 

CAC" awn 

Day p,;,r;< 10 #'I 

pem11sJ,cn to 

I Keyed at stof'9 I '"'""'""' 

certain NnU ar.o crealt \ll'!lont !J/Vtt I01MI OJI)' Sl'!IMClt ttEmbiet'S IJCCltit IO 1M tunas rrom tl'tN tr'lllllafY ~ ml:ltary p31d;yr,s:91ty Paydor,r}. Ii I bo.ok wiih oned ~ barllu OJ cr;,dil ,mlion~ I 9fft' CAC 

etlt my ~nt Ot'I tl'ltN EMY Pa';idlYL 

_ IACR • .i,.. 1oonolA<:lREE <Choo.seOnej 

CAC.g, .. n to ir.ri..r .. 1n1 "'~'° Jt!'IOUl'nl arlll • uroor no l'«Ht:'/ tor t:ansactl" OCM~"'"" 

tE:ee!WIQ '-""tl tlOU:lf! 10 mp IMst- ~ O'Ktions 

• 

______ 81MClt)':_______ BankSbtlY. 

ACCOUNT# O c 11~., Da.w..v•C..,,.d•-> ,...1 T1 , ,,....., ... 1-.-, 'T1 "'1c-r1 ... 1 ....... 1,,w...,... T1 _,..,1rn 

ARf CONTA.r£0 ON MORE THAlf ONf l'AGE 

9.,.. !.S,'50 ~.. ~ ~ ..,.,_1Q1t 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 21 of 56 PageID #: 21 

Illustration 9: Example sixth page from Defendants’ retail installment sales contracts (smaller than actual 

size) 

Page 21 of 56 
 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 22 of 56 PageID #: 22 

Defendants’ Failure to Comply with the MLA Disclosure Requirements 

54. The payment schedules that Defendants include in their retail installment 

sales contracts assume a monthly payment schedule. In contrast, the electronic fund transfer 

preauthorizations that Defendants receive from service members provide for twice-monthly 

payments, and in various instances, do not fully or correctly state the required payments. This 

conflict in payment terms results in Defendants failing to provide a clear description of the 

payment obligation. 

55. Because Defendants do not provide disclosures in accord with TILA, 

including the Itemization of the Amount Financed, they also do not provide all disclosures 

required by the MLA. 

56. At no point during the sale or contracting process do Defendants provide 

service members oral disclosure of the statement of the military annual percentage rate 

(“MAPR”). Nor do Defendants provide service members a toll-free number where they can 

obtain the statement of the MAPR. 

Defendants’ Failure to Comply with the Holder Rule 

57. Defendants fail to include in their retail installment sales contracts the notice 

provided in 16 C.F.R. § 433.2, known as the “Holder Notice.” 

Long-Standing and Ongoing Conduct 

58. Based on the facts and violations of law alleged in this Complaint, the FTC 

and State Attorneys General have reason to believe that Defendants are violating or are about 

to violate laws enforced by the Commission and State Attorneys General because, among 

other things: Defendants only ceased some unlawful conduct after learning of law 

enforcement investigations while other conduct is ongoing despite Defendants’ awareness of 

law enforcement investigations; Defendants engaged in their unlawful conduct repeatedly 

Page 22 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 23 of 56 PageID #: 23 

over many years and continued their unlawful conduct despite knowledge of numerous 

consumer complaints; and Defendants remain in the business of selling and financing 

jewelry, watches, military-themed gifts, and ancillary products primarily to active-duty 

service members and therefore maintain the means, ability, and incentive to resume any 

unlawful conduct which has ceased. 

VIOLATIONS OF THE FTC ACT 

59. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or 

deceptive acts or practices in or affecting commerce.” 

60. Misrepresentations or deceptive omissions of material fact constitute 

deceptive acts or practices prohibited by Section 5(a) of the FTC Act. 

61. Acts or practices are unfair under Section 5 of the FTC Act if they cause or 

are likely to cause substantial injury to consumers that consumers cannot reasonably avoid 

themselves and that is not outweighed by countervailing benefits to consumers or 

competition. 15 U.S.C. § 45(n). 

VIOLATIONS OF STATE UNFAIR AND DECEPTIVE PRACTICE ACTS 

62. The state statutes listed below generally prohibit deceptive trade practices 

and, with the exception of Virginia, also prohibit practices that are unfair in connection with 

the offer and sale of goods and services to consumers. 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17200 et seq. and §§ 17500 et seq. 

Connecticut CONN. GEN. STAT. §§ 42-110(a) through 42-110(q). 

Delaware Delaware Consumer Fraud Act, 6 Del. C. § 2513. 

Florida FLA. STAT. ch. 501, pt. II (2021). 

Georgia GA. CODE ANN. §§ 10-1-390 through 10-1-408 (2017). 

Hawaii HAW. REV. STAT. §§ 480-2 and 481A. 

Idaho Idaho Consumer Protection Act, title 6, chapter 48, Idaho Code. 

Page 23 of 56 
 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 24 of 56 PageID #: 24 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE § 714.16. 

Kansas KAN. STAT. ANN. §§ 50-623 et seq. 

Louisiana Louisiana Unfair Trade Practices and Consumer Protection Law, LA. REV. 

STAT. ANN. §§ 51:1401-1428. 

Maryland MD. CODE ANN., COM. LAW §§ 13-101 through 13-501 (2013 Repl. Vol. 

and 2021 Supp.). 

Nevada NEV. REV. STAT. §§ 598.0915(15), 598.096, and 598.0963. 

New York NY EXEC. L. § 63(12); N.Y. GEN’L BUS. L. § 349. 

North Carolina N.C. GEN. STAT. § 75-1.1. 

Pennsylvania PA. UTPCPL 73 P.S. §§ 201-1 through 201-9.2 

Virginia VA. CODE ANN. §§ 59.1-196 through 59.1-207. 

Washington WASH. REV. CODE §§ 19.86, 19.09, and 48.110. 

Count I 

False or Unsubstantiated Credit Improvement Representations 

(By the FTC and the State Attorneys General) 

63. In numerous instances in connection with the advertising, marketing, 

promotion, offering for sale, or sale of jewelry, watches, military-themed gifts, and ancillary 

products, including through the means described in Paragraphs 18 through 40, Defendants 

represent, directly or indirectly, expressly or by implication, that consumers who enter into 

Defendants’ retail installment sales contracts will achieve a significant improvement in their 

credit score as long as they make all payments on time. 

64. In truth and in fact, in numerous instances, the representations set forth in 

Paragraph 63 are false or misleading, or were not substantiated at the time the representations 

were made. 

65. Therefore, the making of the representations as set forth in Paragraph 63 

constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a). 

Page 24 of 56 
 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 25 of 56 PageID #: 25 

66. The foregoing practices also violate the laws of the states of the State 

Attorneys General as follows: 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17200 et seq. and §§ 17500 et seq. 

Connecticut CONN. GEN. STAT. § 42-110b(a). 

Delaware Delaware Consumer Fraud Act, 6 Del. C. § 2513. 

Florida FLA. STAT. § 501.204(1) (2021). 

Georgia GA. CODE ANN. § 10-1-393 (2017). 

Hawaii HAW. REV. STAT. §§ 480-2 and 481A. 

Idaho Idaho Consumer Protection Act, title 6, chapter 48, Idaho Code. 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE § 714.16. 

Kansas KAN. STAT. ANN. § 50-626. 

Louisiana LA. REV. STAT. ANN. § 51:1405. 

Maryland MD. CODE ANN., COM. LAW §§ 13-101 through 13-501 (2013 Repl. Vol. 

and 2021 Supp.). 

Nevada NEV. REV. STAT. § 598.0915(15). 

New York NY EXEC. L. § 63(12); N.Y. GEN’L BUS. L. § 349. 

North Carolina N.C. GEN. STAT. § 75-1.1. 

Pennsylvania PA. UTPCPL 73 P.S. §§ 201-1 through 201-9.2. 

Virginia VA. CODE ANN. § 59.1-200(A). 

Washington WASH. REV. CODE §§ 19.86.020, 19.09.100, and 19.09.340. 

Count II 

Misrepresentations Regarding Protection Plans 

(By the FTC and the State Attorneys General) 

67. In numerous instances in connection with the advertising, marketing, 

promotion, offering for sale, or sale of jewelry, watches, military-themed gifts, and ancillary 

products, including through the means described in Paragraphs 41 through 43, Defendants 

represent, directly or indirectly, expressly or by implication, that the Protection Plan 

appearing in consumers’ retail installment sales contracts is not optional or is required to 

finance the purchase. 

Page 25 of 56 
 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 26 of 56 PageID #: 26 

68. In truth and in fact, in numerous instances in which Defendants have made 

the representations set forth in Paragraph 67, the Protection Plan appearing in consumers’ 

retail installment sales contracts is optional and is not required to finance the purchase. 

69. Therefore, Defendants’ representations as set forth in Paragraph 67 are false 

or misleading and constitute deceptive acts or practices in violation of Section 5(a) of the 

FTC Act, 15 U.S.C. § 45(a). 

70. The foregoing practices also violate the laws of the states of the State 

Attorneys General as follows: 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17200 et seq. and §§ 17500 et seq. 

Connecticut CONN. GEN. STAT. § 42-110b(a). 

Delaware Delaware Consumer Fraud Act, 6 Del. C. § 2513. 

Florida FLA. STAT. § 501.204(1) (2021). 

Georgia GA. CODE ANN. § 10-1-393 (2017). 

Hawaii HAW. REV. STAT. §§ 480-2 and 481A. 

Idaho Idaho Consumer Protection Act, title 6, chapter 48, Idaho Code 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE § 714.16. 

Kansas KAN. STAT. ANN. § 50-626 . 

Louisiana LA. REV. STAT. ANN. § 51:1405. 

Maryland MD. CODE ANN., COM. LAW §§ 13-101 through 13-501 (2013 Repl. Vol. 

and 2021 Supp.). 

Nevada NEV. REV. STAT. § 598.0915(15). 

New York NY EXEC. L. § 63(12); N.Y. GEN’L BUS. L. § 349. 

North Carolina N.C. GEN. STAT. § 75-1.1. 

Pennsylvania PA. UTPCPL 73 P.S. §§ 201-1 through 201-9.2. 

Virginia VA. CODE ANN. § 59.1-200(A). 

Washington WASH. REV. CODE §§ 19.86.020, 19.09.100, and 19.09.340. 

Page 26 of 56 
 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 27 of 56 PageID #: 27 

Count III 

Unfair Protection Plan Sales Practices 

(By the FTC and the State Attorneys General except Virginia) 

71. In numerous instances, Defendants have added Protection Plans costing 

$39.99 to $349.99 to consumers’ retail installment sales contracts without consumers’ 

express, informed consent. 

72. Defendants’ actions cause or are likely to cause substantial injury to 

consumers that consumers cannot reasonably avoid themselves and that is not outweighed by 

countervailing benefits to consumers or competition. 

73. Therefore, Defendants’ acts or practices as set forth in Paragraph 71 

constitute unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45(a), 

(n). 

74. The foregoing practices also violate the laws of the states of the State 

Attorneys General as follows: 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17200 et seq. and §§ 17500 et seq. 

Connecticut CONN. GEN. STAT. § 42-110b(a). 

Delaware Delaware Consumer Fraud Act, 6 Del. C. § 2513. 

Florida FLA. STAT. §§ 501.204(1) (2021). 

Georgia GA. CODE ANN. § 10-1-393 (2017). 

Hawaii HAW. REV. STAT. §§ 480-2 and 481A. 

Idaho Idaho Consumer Protection Act, title 6, chapter 48, Idaho Code. 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE § 714.16. 

Kansas KAN. STAT. ANN. §§ 50-626 and 50-627. 

Louisiana LA. REV. STAT. ANN. § 51:1405. 

Maryland MD. CODE ANN., COM. LAW §§ 13-101 through 13-501 (2013 Repl. Vol. 

and 2021 Supp.). 

Nevada NEV. REV. STAT. § 598.0915(15). 

New York NY EXEC. L. § 63(12); N.Y. GEN’L BUS. L. § 349. 

North Carolina N.C. GEN. STAT. § 75-1.1. 

Page 27 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 28 of 56 PageID #: 28 

Pennsylvania PA. STAT. TITLE UTPCPL 73 P.S. §§ 201-1 through 201-9.2. 

Washington WASH. REV. CODE §§ 19.86.020, 19.09.100, and 19.09.340. 

VIOLATIONS OF TILA AND REGULATION Z 

75. Under TILA, 15 U.S.C. §§ 1601–1666j, and its implementing Regulation Z, 

12 C.F.R. Part 1026, creditors who extend “closed-end credit,” as defined in 12 C.F.R. 

§ 1026.2(a)(10), must comply with the applicable disclosure provisions of TILA and 

Regulation Z, including but not limited to Sections 1026.17 and 1026.18 of Regulation Z. 

12 C.F.R. §§ 1026.17 and 1026.18. Under TILA, assignees, such as Defendants CAC USA 

and CAC, are also liable for violations on the face of the disclosure. Section 131 of TILA, 

15 U.S.C. § 1641. 

76. “Creditor” means a person who regularly extends consumer credit that is 

subject to a finance charge or is payable by written agreement in more than four installments 

(not including a downpayment), and to whom the obligation is initially payable, either on the 

face of the note or contract, or by agreement when there is no contract. 12 C.F.R. 

§ 1026.2(a)(17). Defendants are creditors under TILA and Regulation Z because they extend 

consumer credit subject to a finance charge and the obligation is initially payable to them. 

77. “Closed-end credit” means consumer credit other than open-end credit, and 

“[o]pen-end credit” is defined as “consumer credit extended by a creditor under a plan in 

which: (i) the creditor reasonably contemplates repeated transactions; (ii) the creditor may 

impose a finance charge from time to time on an outstanding unpaid balance; and (iii) the 

amount of credit that may be extended to the consumer during the term of the plan (up to 

any limit set by the creditor) is generally made available to the extent that any outstanding 

balance is repaid.” 12 C.F.R. §§ 1026.2(a)(10) and (a)(20). Defendants extend closed-end 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 29 of 56 PageID #: 29 

credit to consumers under Regulation Z because their financing agreements do not meet all 

three criteria for open-end credit. 

78. TILA and Regulation Z require creditors of closed-end credit to disclose, 

before the credit is extended, clearly and conspicuously in writing, the following, among 

other terms of the financing: the identity of the creditor, the amount financed, the itemization 

of the amount financed, the finance charge, the annual percentage rate, using that term, and 

the payment schedule (the number, amount, and timing of payments scheduled to repay the 

obligation). These disclosures must reflect the terms of the legal obligation between the 

parties. 12 C.F.R. §§ 1026.17 and 1026.18. 

79. TILA and Regulation Z also require that, if any advertisement for closed-end 

credit states the amount or percentage of the downpayment, the number of payments or 

period of repayment, the amount of any payment, or the amount of any finance charge, then 

the advertisement must clearly and conspicuously disclose all of the following: the amount 

or percentage of the downpayment, the terms of repayment, and the annual percentage rate, 

using that term. 12 C.F.R. § 1026.24(b) and (d). Catalog or multiple-page advertisements 

may disclose this information in a table if the table is clearly and conspicuously set forth and 

the triggering terms clearly refer to the page or location where the table begins. 12 C.F.R. 

§ 1026.24(e). 

80. TILA and Regulation Z additionally require that if an advertisement for 

closed- end credit states the rate of a finance charge, it shall state the rate as an annual 

percentage rate. 12 C.F.R. § 1026.24(c). 

81. “Advertisement” means a commercial message in any medium that 

promotes, directly or indirectly, a credit transaction. 12 C.F.R. § 1026(a)(2). Defendants 

promote credit transactions in various mediums, including on a website and in email and 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 30 of 56 PageID #: 30 

printed mailers sent to service members, and Defendants are subject to the advertising 

requirements of TILA and Regulation Z. 

82. Under Section 108(c) of TILA, 15 U.S.C. § 1607(c), every violation of TILA 

and Regulation Z constitutes a violation of the FTC Act. 

Count IV 

Failure to Disclose or Clearly and Conspicuously Disclose 

Required Credit Information in Advertisements 

(By the FTC) 

83. In numerous instances, Defendants have violated the requirements of TILA 

and Regulation Z by failing to make required disclosures in print and electronic 

advertisements containing triggering terms, including: 

a. the amount or percentage of the downpayment; 

b. the terms of repayment, which reflect the repayment obligation over the full term 

of the financing; and 

c. the annual percentage rate. 

84. In numerous instances, Defendants have violated the requirements of TILA 

and Regulation Z applicable to multiple-page and electronic advertisements by: 

a. giving required disclosures in a table that is not clearly and conspicuously set forth; 

and 

b. failing to clearly refer to the page or location where a table of disclosures begins. 

85. In numerous instances, Defendants have violated the requirements of TILA 

and Regulation Z by stating a rate of finance charge in advertisements but failing to state that 

rate as an annual percentage rate. 

86. Therefore, Defendants’ practices set forth in Paragraphs 83 through 85 

violate Section 144 of TILA, 15 U.S.C. § 1664, and Section 1026.24 of Regulation Z, 

12 C.F.R. § 1026.24. 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 31 of 56 PageID #: 31 

87. By engaging in the violations of TILA and Regulation Z set forth in 

Paragraphs 83 through 85, Defendants have violated the FTC Act. 

Count V 

Failure to Disclose or Clearly and Conspicuously Disclose 

Required Credit Information in Writing 

(By the FTC) 

88. In numerous instances, Defendants have violated the requirements of TILA 

and Regulation Z by failing to disclose, or clearly and conspicuously disclose, in writing 

before extending closed-end credit to consumers the following information in a manner 

reflecting the terms of the legal obligation between the parties: 

a. the payment schedule; 

b. an itemization of the amount financed separated from other terms and information; 

and 

c. the identity of the creditor. 

89. Therefore, Defendants’ practices set forth in Paragraph 88 violate Sections 

121 and 128 of TILA, 15 U.S.C. §§ 1631 and 1638, and Section 1026.17 and 1026.18 of 

Regulation Z, 12 C.F.R. §§ 1026.17 and 1026.18. Defendants CAC USA’s and CAC’s 

practices, based on their assignee liability in Section 131 of TILA, 15 U.S.C. § 1641, also 

violate Sections 121 and 128 of TILA, 15 U.S.C. §§ 1631 and 1638, and Section 1026.17 and 

1026.18 of Regulation Z, 12 C.F.R. §§ 1026.17 and 1026.18. 

90. By engaging in the violations of TILA and Regulation Z set forth in 

Paragraph 88, Defendants have violated the FTC Act. 

VIOLATIONS OF EFTA AND REGULATION E 

91. Defendants are “persons” as this term is defined in Section 1005.2(j) of 

Regulation E, 12 C.F.R. § 1005.2(j), and are therefore subject to 12 C.F.R. §§ 1005.3(b)(2) 

and 1005.10(b). 

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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 32 of 56 PageID #: 32 

92. Regulation E, 12 C.F.R. § 1005.3(b)(2), states that a person initiating an 

electronic fund transfer using a consumer’s check as a source of information for the transfer 

must provide a notice that the transaction will or may be processed as an electronic fund 

transfer and obtain the consumer’s authorization, which occurs when the consumer receives 

notice and goes forward with the transaction. For point-of-sale transfers, the notice must be 

posted in a prominent and conspicuous location, and a copy or a substantially similar notice 

must be provided to the consumer at the time of the transaction. EFTA, 15 U.S.C. § 1693e, 

and Regulation E, 12 C.F.R. § 1005.10(b), state that preauthorized electronic fund transfers 

from a consumer’s account may be authorized only by a writing signed or similarly 

authenticated by the consumer. The Bureau of Consumer Protection’s Official Staff 

Commentary to Regulation E (Official Staff Commentary to Regulation E), Section 

1005.10(b), 12 C.F.R. § 1005.10(b), provides that a preauthorization for electronic fund 

transfers is valid if, among other things, the terms of the preauthorization are clear and 

readily understandable. Section 1005.10 of the Official Staff Commentary to Regulation E, 

12 C.F.R. § 1005.10(b), cmt. 6, Supp. I, provides that “[a]n authorization is valid if . . . the 

terms of the preauthorized transfer are clear and readily understandable.” 

93. Under Section 918(c) of the EFTA, 15 U.S.C. § 1693o(c), a violation of the 

EFTA and Regulation E constitutes a violation of the FTC Act. 

Count VI 

Failure to Obtain Clear and Readily Understandable Preauthorizations 

for Electronic Fund Transfers 

(By the FTC) 

94. In numerous instances, in connection with the offer, sale, and financing of 

jewelry, watches, military-themed gifts, and ancillary products, Defendants have obtained 

Page 32 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 33 of 56 PageID #: 33 

preauthorization from consumers for electronic fund transfers from consumers’ accounts with 

authorization forms the terms of which are not clear and readily understandable. 

95. Therefore, Defendants’ acts or practices as set for in Paragraph 94 violate, 

15 U.S.C. § 1693e, and Regulation E, 12 C.F.R. § 1005.10(b). 

96. By engaging in the violations of EFTA and Regulation E set forth in 

Paragraph 94, Defendants have violated the FTC Act. 

VIOLATIONS OF THE MLA AND DoD REGULATION 

97. The amended MLA and amended DoD Regulation protect covered borrowers 

including active duty members of the military from certain credit practices. 

98. “Covered borrower” includes a consumer who, at the time he or she becomes 

obligated on a consumer credit transaction, is a member of the armed forces on active duty or 

active guard or reserve duty. 10 U.S.C. § 987(i)(1); 32 C.F.R. § 232.3(g)(1) and (2). 

99. “Creditor” means a person who is engaged in the business of extending 

consumer credit, or an assignee of such person with respect to any consumer credit extended. 

10 U.S.C. § 987(i)(5); 32 C.F.R. § 232.3(i)(1) and (2). Defendants are creditors under the 

MLA and DoD Regulation because they are engaged in the business of extending consumer 

credit or are assignees of such persons with respect to any consumer credit extended. 

100. “Consumer credit” means credit offered or extended to a covered borrower 

primarily for personal, family, or household purposes that is subject to a finance charge or 

payable by a written agreement in more than four installments. 32 C.F.R. § 232.3(f)(1). 

Defendants offer and extend consumer credit by means of selling jewelry, watches, militarythemed gifts, and ancillary products or services through retail installment sales contracts to 

active duty service members. 

Page 33 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 34 of 56 PageID #: 34 

101. With respect to any extension of consumer credit to a covered borrower, 

among other things, the DoD Regulation requires creditors to provide covered borrowers any 

disclosure required by Regulation Z, in accordance with the requirements of Regulation Z, 

before or at the time the borrower becomes obligated on the transaction. 32 C.F.R. § 

232.6(a)(2). The DoD Regulation also requires that creditors provide a clear description of 

the payment obligation to the covered borrower before or at the time the borrower becomes 

obligated on the transaction. 32 C.F.R. § 232.6(a)(3). Creditors must provide these 

disclosures in writing. Creditors must also orally provide the description of the payment 

obligation, and a statement of the MAPR applicable to the extension of consumer credit. 32 

C.F.R. § 232.6(d). 

Count VII 

Violations of the MLA and DoD Regulation 

(By the FTC) 

102. In numerous instances, Defendants have violated the requirements of the 

MLA and DoD Regulation by failing to provide covered borrowers, before or at the time the 

borrower becomes obligated on the transaction, the following in writing: 

a. a clear description of the payment obligation; and 

b. the disclosures required by Regulation Z in accordance with the requirements of 

Regulation Z. 

103. In numerous instances, Defendants have violated the requirements of the 

MLA and DoD Regulation by failing to provide covered borrowers, before or at the time the 

borrower becomes obligated on the transaction, an oral statement of the MAPR applicable to 

the extension of consumer credit. 

Page 34 of 56 
 

 

 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 35 of 56 PageID #: 35 

104. Therefore, Defendants’ practices set forth in Paragraphs 102 and 103 violate 

Sections 232.6(a)(2) and (3) and 232.6(d)(2) of the DoD Regulation, 32 C.F.R. 

§§ 232.6(a)(2) and (3) and 232.6(d)(2), respectively. 

VIOLATIONS OF THE HOLDER RULE 

105. The Holder Rule, promulgated by the Commission under Section 18 of the 

FTC Act, 15 U.S.C. § 57a, became effective in its entirety on May 14, 1976, and since that 

date has remained in full force and effect. 

106. “Seller” means a person who, in the ordinary course of business, sells or 

leases goods or services to consumers. 16 C.F.R. § 433.1(j). Defendants are “sellers” as 

defined in the Holder Rule because they sell goods to consumers in the ordinary course of 

business. 

107. The Holder Rule prohibits sellers from taking or receiving a consumer credit 

contract which fails to contain the following provision in at least ten point, bold face type: 

NOTICE 

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT 

TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD 

ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED 

PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY 

HEREUNDER BY THE DEBTOR SHALL NOT EXCEED THE AMOUNTS 

PAID BY THE DEBTOR HEREUNDER. 

16 C.F.R. § 433.2(a). 

108. Pursuant to Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), a 

violation of the Holder Rule constitutes an unfair or deceptive act or practice in violation of 

Section 5(a)(1) of the FTC Act, 15 U.S.C. § 45(a)(1). 

Page 35 of 56 
 

 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 36 of 56 PageID #: 36 

Count VIII 

Failure to Provide Holder Notice 

(By the FTC) 

109. In numerous instances, Defendants have, in connection with the selling or 

offering to sell goods or services to consumers in or affecting commerce, as “commerce” is 

defined in Section 4 of the FTC Act, 15 U.S.C. 44, Defendants have taken or received 

consumer credit contracts which fail to include the Notice set forth in Paragraph 107, as 

required by 16 C.F.R. § 433.2(a). 

110. Therefore, Defendants’ acts or practices as set forth in Paragraph 109 violate 

the Holder Rule, 16 C.F.R. § 433.2. 

STATE LAW VIOLATIONS 

111. The conduct described in Paragraphs 18-43 constitutes a “deceptive trade 

practice” or an “unfair trade practice,” except for California, where it is an “unlawful trade 

practice,” (and except for Virginia as to “unfair trade practices”) as those terms are defined by 

the laws of the states of the State Attorneys General, as stated in Paragraphs 62, 66, 70, and 74 

above. 

CONSUMER INJURY 

112. Consumers are suffering, have suffered, and will continue to suffer 

substantial injury as a result of Defendants’ violations of the FTC Act, TILA and Regulation 

Z, EFTA and Regulation E, the MLA and DoD Regulation, the Holder Rule, and state law. In 

addition, Defendants have been unjustly enriched as a result of their unlawful acts or 

practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure 

consumers, reap unjust enrichment, and harm the public interest. 

Page 36 of 56 
 

 

 

 

 

 

 

 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 37 of 56 PageID #: 37 

THIS COURT’S POWER TO GRANT RELIEF 

113. Pursuant to 28 U.S.C. § 1367, this Court has supplemental jurisdiction to 

allow the Attorneys General to enforce their state laws against Defendants in this Court and 

to grant such relief as provided under the following state laws, including injunctive relief, 

rescission or reformation of contracts, restitution, the refund of monies paid, the 

disgorgement of ill-gotten monies, civil penalties, attorneys’ fees, expenses, costs, and such 

other relief to which the State Attorneys General may be entitled: 

STATE STATUTORY AUTHORITY 

California CAL. BUS. & PROF. CODE §§ 17203, 17206, 17206.1, 17535, and 17536. 

Connecticut CONN. GEN. STAT. §§ 42-110a through 42-110q. 

Delaware Delaware Consumer Fraud Act, 6 Del. C. §§ 2511 et seq. 

Florida FLA. STAT. §§ 501.207, 501.2075, and 501.2077 (2021). 

Georgia GA. CODE ANN. §§ 10-1-397 (2017). 

Hawaii HAW. REV. STAT. §§ 480-3.1, 480-12, 480-15, 481A, 487-14, and 487-15. 

Idaho Idaho Consumer Protection Act, §§ 48-606 and 48-607. 

Illinois Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 

505/1 et seq. 

Iowa IOWA CODE §§ 714.16(7), (8), (9), and (11). 

Kansas KAN. STAT. ANN. §§ 50-632, 50-636, 50-676, and 50-677. 

Louisiana Louisiana Unfair Trade Practices and Consumer Protection Law, LA. REV. 

STAT. ANN. §§ 51:1407 and 51:1408. 

Maryland MD. CODE ANN., COM. LAW §§ 13-402(b), 13-403(b), 13.409, and 

13.410. 

Nevada NEV. REV. STAT. § 598.0999. 

New York N.Y. EXEC. LAW § 63(12); N.Y. GEN. BUS. LAW § 350-d. 

North Carolina N.C. GEN. STAT. §§ 75-14, 75-15.1, 75-15.2, and 75.16.1. 

Pennsylvania PA UTPCPL 73 P.S. §§ 201-1 through 201-9.2. 

Virginia VA. CODE ANN. §§ 59.1-203, 59.1-205, and 59.1-206. 

Washington WASH. REV. CODE §§ 19.86.080 and 19.86.140. 

Page 37 of 56 
	



 
 
 	 		 

	 	 	

	 	 	

	 	 	

	 	 	

	 	 	 	 	

	

	 	




 

 


 

 
 	 		 



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Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 39 of 56 PageID #: 39 

FOR THE ATTORNEY GENERAL OF CALIFORNIA 

ROB BONTA 

By:

Nicklas A. Akers 

Senior Assistant Attorney General - Consumer Protection 

nicklas.akers@doj.ca.gov

Bar Roll # 4709184 

California Department of Justice 

455 Golden Gate Avenue, 11th Floor 

San Francisco, CA 94102 

(415) 510-3364 

Signed June 22, 2022 

Page 39 of 56 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 40 of 56 PagelD #: 40 

FOR THE ATTORNEY GENERAL OF CONNECTICUT 

;~ 

Deputy Associate Attorney General/Chief of the 

Environmental Section 

Matthew.Levine@ct.gov 

Bar Roll # ML2346 

Office ofthe Connecticut Attorney General 

165 Capitol Avenue 

Haitford, CT 06106 

(860) 808-5400 

Signed July 11,2022 

Page 40 of 56 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 41 of 56 PagelD #: 41 

FOR THE ATTORNEY GENERAL OF DELAWARE 

KATHY JENNINGS 

By 1~~ 

Jordan A. Braunsbrg 

Deputy Attorney General, Consumer Protection Unit 

Jordan.Braunsberg@delaware.gov 

DE Bar Number: 5593 

pro hac vice application pending 

Delaware Department of Justice 

820 N. French St., 5th Floor 

Wilmington, DE 19801 

(302) 683-8815 

Signed March _ , 2022 

Page 41 of 56 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 42 of 56 PagelD #: 42 

FOR THE ATTORNEY GENERAL OF FLORIDA 

ASHLEY MOODY 

By: ~ 

Ellen Annaliese Bullock 

Senior Assistant Attorney General 

Ellen.Bullock@myfloridalegal.com 

FL Bar # I 02980 

pro hac vice application pending 

State of Florida 

Department of Legal Affairs 

Consumer Protection Division 

135 W. Central Blvd., Suite 1000 

Orlando, FL 32801 

( 407) 316-4840 

'"l\,\\~ 

Signed .U111 m\~, 2022 

Page 42 of 56 
FOR THE ATTORNEY GENERAL OF GEORGIA 

CHRIS CARR 

By:~fwd4/ 

Brianoldberg 

Assistant Attorney General 

bgoldberg@law.ga.gov 

Bar Roll # BG8052 

Office of the Attorney General Chris Carr 

Consumer Protection Division 

Georgia Department of Law 

2 Martin Luther King, Jr. Drive, SE 

Suite 356 

Atlanta, GA 30334 

(404) 458-3555 

Signed-+.4:aicb _., 2022 

)c.,..v'-t 10 

Page 43 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 43 of 56 PageID #: 43 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 44 of 56 PagelD #: 44 

FOR THE EXECUTIVE DIRECTOR OF 

THE STATE OF HAWAII 

OFFICE OF CONSv,y,,l".!_,9_-,tD

STEPHEN H. LE -- By: _________

Melina D. Sanchez 

Enforcement Attorney 

msanchez@dcca.hawaii.gov 

HI Bar Roll # 6613 

pro hac vice application pending 

State of Hawaii 

Department ofCommerce and Consumer Affairs 

Office of Consumer Protection 

235 S. Beretania Street #801 

Honolulu, HI 96813 

(808) 586-5977 

Signed June 16, 2022 

Page 44 of56 
 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 45 of 56 PageID #: 45 

FOR THE ATTORNEY GENERAL OF IDAHO 

LAWRENCE WASDEN 

By:

Stephanie N. Guyon

Deputy Attorney General

stephanie.guyon@ag.idaho.gov

Idaho State Bar # 5989 

pro hac vice application pending 

Idaho Attorney General’s Office 

Consumer Protection Division 

700 W. Jefferson Street, #210 

Boise, ID 83720 

(208) 334-4135 

Signed June 9, 2022 

Page 45 of 56 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 46 of 56 PagelD #: 46 

FOR THE ATTORNEY GENERAL OF ILLINOIS 

KWAME RAOUL 

By ~ ~ GregGrzkiewicz 

Bureau Chief, Consumer Fraud Bureau 

Tom Banning 

Bureau Chief, Military and Veterans Rights Bureau 

Gregory W. Jones 

Assistant Attorney General, Consumer Fraud Bureau 

Randall L. Tyner 

Assistant Attorney General, Military and Veterans Rights 

Bureau 

gregory.jones@ilag.gov 

randall.tyner@ilag.gov 

IL Bar Roll # 6313157 (Jones) 

IL Bar Roll # 6276080 (Tyner) 

pro hac vice applications pending 

Office of the Illinois Attorney General 

100 W. Randolph St., 12th Fl. 

Chi cago, IL 60601 

(3 12) 814-4987 (Jones) 

(312) 814-3892 (Tyner) 

..)W'le.. I) Signed March _ 2022 

Page 46 of 56 
FOR THE ATTORNEY GENERAL OF IOWA 

THOMAS J. MILLER 

BL] lDl 

Jessica I hitney . . , 

Deput Attorney General for Public Protect1'~ 

j essica. Jhitney@ag.iowa.gov 

Iowa Bar Roll# AT0002186 

pro hac vice application pending 

Office of the Attorney General of Iowa 

Hoover State Office Building 

1305 E. Walnut Street 

Des Moines, IA 50319 

(515) 281-5926 

Jl>-\1).e.. rd 

Signed .Mareh :JJ, 2022 

Page 47 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 47 of 56 PageID #: 47 
FOR THE ATTORNEY GENERAL OF KANSAS 

DEREK SCHMIDT 

By: ~ Lynette.Bakker 

Assistant Attorney General 

Consumer Protection & Antitrust Division 

lynette.bakker@ag.ks.gov 

Kansas Bar # 22104 

pro hac vice application pending 

Office of the Attorney General of Kansas 

120 SW 10th Avenue, Suite 430 

Topeka, KS 66612-1597 

(785) 368-8451 

Signed March _ , 2022 

Page 48 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 48 of 56 PageID #: 48 
Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 49 of 56 PagelD #: 49 

FOR THE ATTORNEY GENERAL OF LOUISIANA 

JEFF LANDRY 

Bye Nuu.Jt:~(L/

Hanna W. Thomas 

Assistant Attorney General 

ThomasH@ag.louisiana.gov 

LA Bar Roll # 32082 

pro hac vice application pending 

Louisiana Department ofJustice 

Office ofthe Attorney General 

Public Protection Division 

Consumer Protection Section 

1885 N. Third Street 

Baton Rouge, LA 70802 

(225) 326-6438 

Signed June 14, 2022 

Page 49 of 56 
FOR THE ATTORNEY GENERAL OF MARYLAND 

BRIAN E. FROSH 

~;,o:6 "7; l V~ 

Assistant Attorney General 

wmeeks@oag.state.md.us 

Bar Roll # WM-106 

Office of the Attorney General 

Consumer Protection Division 

200 Saint Paul Place 

Baltimore, MD 21202 

(410) 576-6957 

/v\\1. 6 

Signed ~ _. 2022 

Page 50 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 50 of 56 PageID #: 50 
FORTHEATTORNEYGENERALOFNEVADA 

AARON FORD 

By: ~ d!R.. , e, c/1.r;ll KYlAA ~ Michelle C. Newman -- - ' · ~ - \ 

Senior Deputy Attorney General 

MNewman@ag.nv.gov 

Nevada Bar# 13206 

pro hac vice application pending 

Office of the Attorney General 

Bureau of Consumer Protection 

l 00 North Carson Street 

Carson City, NV 89701-4717 

(775) 684-1164 r.~ 

Signed MaFeh _ , 2022 

Page 51 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 51 of 56 PageID #: 51 
RNEY GENERAL OF NEW YORK 

s 

rney eneral In arge 

ttorney General 

deanna.nelson@ag.ny.gov 

NY Bar Roll # 2582237 

Bar Roll # pendi,:zg 2 S 8 z.. L Fl 

Office of the Attorney General of New York 

317 Washington Street 

Watertown, NY 1360 I 

(3 15) 523-6080 

, /v/.., 

Signed lfvtmttr J$ 2022 

Page 52 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 52 of 56 PageID #: 52 
Page 53 of 56 

 

 

FOR THE ATTORNEY GENERAL OF NORTH CAROLINA

JOSHUA H. STEIN

By:

Phillip K. Woods

Special Deputy Attorney General

pwoods@ncdoj.gov

NC Bar Roll # 18439

pro hac vice application pending

North Carolina Department of Justice

P.O. Box 629

Raleigh, NC 27602-0629

(919) 716-6052

Signed June __, 2022 13

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 53 of 56 PageID #: 53 
FOR THE ATTORNEY GENERAL OF PENNSYLVANIA 

JOSH SHAPIRO 

By: _,/,/'/J. ~ ~ ~~L.,..,,.,,-,,,;,.--

Norm . arden / 

Senior Deputy Attorney General and Attorney in Charge 

Military and Veterans Affairs 

nmarden@attorneygeneral.gov 

PA Bar Roll # 203423 

pro hac vice application pending 

Pennsylvania Office of Attorney General 

Antitrust Section 

14th Floor, Strawberry Square 

Harrisburg, PA 17120 

(717) 787-4530 

Signed Mafck _ ,.20221' J u.n <Z :J.. 71 ;2..0 .2.~ 

Page 54 of 56 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 54 of 56 PageID #: 54 
 

 

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 55 of 56 PageID #: 55 

FOR THE ATTORNEY GENERAL OF VIRGINIA 

JASON S. MIYARES 

By:

Stephen J. Sovinsky

Assistant Attorney General 

SSovinsky@oag.state.va.us

VA Bar Roll #85637 

pro hac vice application pending 

Office of the Attorney General

202 North 9th Street 

Richmond, VA 23219 

(804) 823-6341 

Signed June 9, 2022 

Page 55 of 56 
 

Lar~ Payrie---

Case 2:22-cv-04260 Document 1 Filed 07/20/22 Page 56 of 56 PageID #: 56 

FOR THE ATTORNEY GENERAL OF WASHINGTON 

BOB FERGUSON 

By: 

Larissa Payne 

Assistant Attorney General 

Larissa.Payne@atg.wa.gov 

WSBA #31461 

NY Registration #4331252 

Washington State Office of the Attorney General 

2425 Bristol Ct SW 

PO Box 40114 

Olympia, WA 98504-0114 

(360) 586-8880 

Signed March ____, 2022 

Page 56 of 56