A Yonkers, New York, company, Thrift Land USA, was fined $700,000 on Thursday for claiming the used clothes in their clothing donation bins were going to charity and to those who needed the clothing. Instead, New York prosecutors said, they took the clothes and sold them around the world and made at least $10 million before […]
A Yonkers, New York, company, Thrift Land USA, was fined $700,000 on Thursday for claiming the used clothes in their clothing donation bins were going to charity and to those who needed the clothing. Instead, New York prosecutors said, they took the clothes and sold them around the world and made at least $10 million before being apprehended.
The New York State Attorney General’s office stated that Thrift Land USA has placed more than 1,300 clothing bins around New York and Connecticut and collected an untold amount of clothing, according to CNN. On the bins, Thrift Land USA had the logos of several regional charities including Big Brother Big Sister. The attorney general’s office stated that people thought their used clothing was all going to the needy when, in reality, it lined the pockets of the owners of Thrift Land USA with millions of dollars.
While making their profits, the attorney general’s office said they only paid the charities a couple of hundred dollars every month for the right to use their charity’s name on the clothing collection bins. The attorney general’s office stated that their actions were deplorable and that the government would make the owners accountable for their lies and deceptions.
The attorney general’s office also held the charities responsible for the deception and the fraud. One of the charities was found to be operating illegally and was shut down while another was held responsible though it was mostly due to a lack of record keeping and being on top of their donations situation.
While it is not technically illegal, the attorney general said, about posting a sign on a bin stating that you are going to sell the clothes for a profit, they believe that it is inherently deceptive and that good and charitable people were being misled. Thrift Land USA will remove the charities’ names from their bins and they will re-brand them to reflect the true nature of their business operation.