
Last week, a King County Superior Court judge ruled that from 2009 to today, for-profit Value Village deceived consumers into believing the company is a non-profit or a charity and that purchases benefited charities, when they do not. The judge ruled that Value Village knew or should have known its advertising was deceptive.
King County Superior Court Judge Roger Rogoff ruled that Value Village’s advertising misled consumers into thinking that it was a charity or non-profit.
According to a consumer protection lawsuit filed by Washington State Attorney General Bob Ferguson, Value Village is a for-profit business that brings in $1 billion in revenue annually. More importantly, Ferguson alleged that Value Village knew that its advertising had the capacity to deceive consumers based on marketing studies that it commissioned and testimony from its former chief executive officer.
Judge Rogoff also found that Value Village misled Washingtonians that their purchases benefit charities. In fact, according to the lawsuit, no portion of purchases made in stores owned by Value Village’s parent company, TVI Inc., has benefitted charities.
The ruling only addresses whether Value Village broke the law. Judge Rogoff will determine the amount of penalties Value Village will face for doing so at a separate hearing, expected sometime next spring.
“Value Village profited by misleading Washingtonians into believing that it was a non-profit,” Ferguson said. “My office received numerous complaints from consumers who feel deceived by Value Village’s advertising.”
Judge Rogoff also found Value Village deceived consumers in the Spokane area when it advertised that donations would benefit the Rypien Foundation. The company paid Rypien a flat fee per month for the use of the foundation’s name and logo. However, Rypien was not paid for all donations.
Much of Value Village’s advertising gave Washington consumers the impression that it was a non-profit organization. For example, advertisements in store and online claimed Washingtonians shopping or donating at the stores would “help your neighbors,” constitute “good deeds” and support Value Village’s “philanthropic efforts” in developing nations.
Value Village’s advertising claimed in-store purchases benefited its charitable partners. For example, one of the company’s in-store advertisements said, “Your donations and purchases help us fund [non-profits’] programs and services. How’s that for shopping with a smile?” No portion of Value Village in-store sales benefited its charity partners.
Judge Rogoff read his ruling at a hearing Friday morning. The written order is expected to follow sometime this week. However, the state did not prevail on every claim.
Ferguson filed a lawsuit in December 2017 against Bellevue-based TVI Inc., the company that owns Value Village. The lawsuit alleged that the company has deceived thousands of Washington consumers and donors for more than a decade with an aggressive marketing campaign.
According to the Attorney General’s Office (AGO), TVI is the largest for-profit thrift retailer in the world, generating more than $1 billion in annual revenue. It runs 330 stores worldwide and 20 Value Village stores in Washington state.
Prior to the lawsuit, multiple consumers shared their frustration over Value Village’s practices in complaints to the Attorney General’s Office.