Hush Day Spa to Issue Refunds to Consumers Who Submit Claims to A.G.’s Office by February 5, 2016
Schneiderman: Consumers Must Receive Reimbursement for Gift Cards When Business Close Their Doors
HAMBURG – Attorney General Eric T. Schneiderman today announced that his office has entered into an Assurance of Discontinuance with Hush Day Spa, LLC, located at 420 Southwestern Boulevard in Hamburg. Hush Day Spa went out of business in September 2015 and at the time, had $40,000 in outstanding gift certificates.
“It is critical that consumers are able to receive reimbursement for gift cards and services paid in advance when businesses are forced to close their doors,” Attorney General Schneiderman said. “I encourage consumers to keep records of their purchases, and as always, to contact my office if they need assistance in these matters.”
The spa opened in January 2010 and provided a wide array of services commonly associated with day spa including manicures, pedicures, facials and massages. Hush Day Spa also sold gift certificates ranging in value from $10.00 to $330.00. Hush Day Spa, however, did not keep a record of the persons to whom it sold the gift certificates. Rather, it treated the gift certificates like bearer bonds; anyone who presented a gift certificate received its value.
Hush Day Spa went out of business in September 2015. According to Rachel Goodberry, its owner, Hush Day Spa’s business thrived reaching a high of 22 employees. Thereafter, however, Ms. Goodberry stated that Hush Day Spa experienced a steady loss of business, which she attributed to the opening of a national chain that offered the same services as Hush Day Spa but at a much lower price.
This settlement comes on the heels of Attorney General Schneiderman’s announcement earlier this month that he and 23 other states, along with the District of Columbia, had reached a settlement with former retailer Radio Shack to ensure that holders of gift cards were able to recover the unused balance on their cards.
At the time that it went out of business, Hush Day Spa had outstanding gift certificates with a face value of over $40,000. Pursuant to its agreement with the Attorney General, Hush Day Spa will issue refunds to consumers who submit complaints to the Attorney General by February 5, 2016. Complaints can be submitted here, or by calling the Attorney General’s Buffalo Regional Office at 716-853-8404.
This matter was handled by James M. Morrissey in the Buffalo Regional Office and Karen Davis, Senior Consumer Fraud Representative. The Buffalo Regional Office is led by Michael Russo. The Division of Regional Offices is led by Executive Deputy Attorney General for Regional Affairs Marty Mack.
