Kmart Settles With FTC Over Gift Card Sales Practices

GuidanceFederal Trade Commission (FTC)Identity Theft
Risk Management

Kmart Corporation has agreed to settle Federal Trade Commission charges that it engaged in deceptive practices in advertising and selling its Kmart gift card. As part of the settlement, Kmart will implement a refund program and publicize it on its Web site. This is the agency’s first law enforcement action involving gift cards.

“Consumers have a right to know when gift cards come with strings attached,” FTC Chairman Deborah Platt Majoras said. “If fees or restrictions apply, gift card issuers must fully and clearly disclose them.”

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