Savers and Minnesota reach settlement over transparency issues

On many occasions, this blog has discussed the importance of regulatory compliance issues. Businesses that are not in compliance with local, state and federal laws can pay serious penalties. These penalties can include large fines and the loss of business licensures. Therefore, it is important that businesses understand which laws and regulations apply to them and how their business can work to stay in compliance.

When a business fails to comply with state or local regulations, legal action can be taken against the business. This was the case for the chain thrift store Savers. According to news reports, Minnesota’s Attorney General had to take action against the chain as a result of transparency issues.

The attorney general — Lori Swanson — claims that the store had misled Minnesotans about how much of the profit from their clothing and household donations were donated to charity. Swanson claimed that the store didn’t pay charities at all for certain household donations. The store denied these allegations.

Savers and the state of Minnesota, however, were able to come to a settlement agreement over these transparency issues. In the settlement Savers agreed to more clearly track and disclose how donation profits were distributed. Moving forward, Savers will display the actual amount given to charities when something is donated to the company. It will also clearly state that it is a for-profit business. Additionally, the retail chain agreed to a $300,000 donation to several local and national charities.

Avoiding legal conflict is important for many businesses throughout the state of Minnesota. Understanding legal requirements from state and local authorities can help businesses avoid costly and time-consuming litigation over regulatory compliance issues.

CBS Minnesota, “Savers Agrees To Changes After Attorney General Lawsuit,” June 25, 2015

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