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Kmart Settles with FTC

Kmart has agreed to implement a refund program and publicize it on its website as part of a settlement with the FTC, which charged that Kmart engaged in deceptive practices in advertising and selling its gift card, writes DM News.

The FTC’s complaint alleged that Kmart promoted the card as equivalent to cash and said that the card would never expire, but failed to disclose that fees of $2.10 per month were assessed after two years of non-use.

The proposed settlement, which is subject to public comment through April 10, requires Kmart to clearly disclose all expiration dates and fees in all advertising and on the front of the card. It also requires Kmart to reimburse the dormancy fees for consumers who can provide a gift card number.