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Michaels — Company research | Choice 15 Choice score Out of 100

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In April 2014, Michaels said malware attacks on point-of-sale systems may have affected about 2.6 million cards used at its stores between May 8, 2013, and January 27, 2014. A separate Aaron Brothers breach may have exposed 400,000 cards. Michaels reported limited fraud reports and said it found no evidence other customer information was at risk.

Against Privacy & surveillance
Sources
https://www.cnet.com/news/privacy/michaels-confirms-breaches-exposed-nearly-3m-credit-cards/
The Michaels breach, which occurred between May 8, 2013, and January 27, 2014, may have affected about 2.6 million cards, or about 7 percent of payment cards used at its stores during the period, the retailer said in a statement. A separate breach on Aaron Brothers’ payment systems from June 26, 2013 to February 27, 2014, may have exposed another 400,000 cards.

On July 30, 2025, a federal judge ruled that Haik Tahmaseb Azizian’s arbitration agreement with Michaels Stores was enforceable and that he had waived the right to bring claims for a proposed class. The court granted Michaels’ motion to compel arbitration in Azizian’s employment lawsuit, which alleged unpaid overtime and minimum wages.

Against Labor & working conditions
Sources
https://news.bloomberglaw.com/litigation/ex-michaels-workers-attempted-class-suit-sent-to-arbitration
Haik Tahmaseb Azizian’s agreement with Michaels Stores Inc. is enforceable and he waived his ability to bring claims on behalf of a proposed class, Judge Cynthia Valenzuela said in a July 30 order that was docketed Aug. 1. The US District Court for the Central District of California granted Michaels’ motion to compel arbitration.

In July 2022, the Ninth Circuit considered former employee Teresa Armstrong’s challenge to an order sending her wage-and-hour claims against Michaels Stores to arbitration. Armstrong argued the Supreme Court’s Morgan v. Sundance ruling changed the waiver analysis; Michaels said it did not and that its limited litigation and repeated statements of intent to arbitrate did not waive arbitration.

Against Labor & working conditions
Sources
https://news.bloomberglaw.com/daily-labor-report/high-courts-arbitration-ruling-gets-michaels-9th-circuit-test
Michaels Stores said it intended to enforce its arbitration agreement with Armstrong in multiple filings before its motion to compel arbitration, but believed it couldn’t until the US Supreme Court ruled that class action waivers in employment contracts are enforceable, Koh said. Although the company waited 10 months, it participated in only minimal discovery and didn’t file any substantive motions, she said.

In a proposed California class action filed in March 2021, Michaels distribution-center employees in Lancaster alleged they were not paid for time spent in repeated security checks. They said checks before lunch cut five to ten minutes from their breaks and reduced time available for rest breaks. The evidence does not report an outcome.

Against Labor & working conditions
Sources
https://news.bloomberglaw.com/daily-labor-report/michaels-workers-seek-compensation-for-mandatory-bag-checks
The named plaintiffs, who work in the company’s warehouse distribution center in Lancaster, Calif., allege they weren’t compensated for time spent during security checks several times a day.

In February 2018, the Justice Department announced that Michaels Stores and Michaels Stores Procurement agreed to a consent decree and $1.5 million payment resolving allegations that Michaels delayed reporting safety issues with glass vases that injured consumers. The decree requires a compliance program and reporting controls; Michaels did not admit violating the law.

Against Corporate conduct
Sources
https://www.justice.gov/archives/opa/pr/michaels-stores-agrees-pay-15-million-settle-cpsc-delayed-reporting-claim
Michaels Stores Inc. and Michaels Stores Procurement Co. Inc. (Michaels) agreed to enter into a consent decree and pay $1.5 million, the Justice Department announced today. The decree resolves allegations that Michaels failed timely to report to the Consumer Product Safety Commission (CPSC) information regarding a large glass vase that injured consumers between 2007 and 2009.

In September 2011, Michaels Stores agreed to pay $800,000 in civil penalties and contribute $1 million to New York public schools to settle deceptive-advertising charges. State Attorney General Eric Schneiderman accused the chain of advertising discounts while charging full price; Michaels said it adopted a new advertising policy in May to comply with the state’s findings.

Against Corporate conduct
Sources
https://www.nbcdfw.com/news/local/michaels-stores-pay-18m-settlement/1903333/
Michaels Stores, a Texas-based arts and crafts supplier, has agreed to pay $1.8 million to settle deceptive-advertising charges leveled by New York state regulators.

OpenSecrets’ archived profile reports contributions by Michaels Stores across election cycles. The totals show $3,185 in 2020, with 94.91% to Democrats, and $885 in 2018, all to Democrats; earlier cycles include contributions directed overwhelmingly to Republicans. The figures cover reported contributions of $200 or more and do not establish the company’s current political position.

You decide Political spending
Sources
http://web.archive.org/web/20221004043554/https://www.opensecrets.org/orgs/michaels-stores/totals?id=D000042000
<table> <thead> <tr> <th>Cycle</th> <th>Total</th> <th>Democrats</th> <th>% to Dems</th> <th>Republicans</th> <th>% to Repubs</th> </tr> </thead> <tbody> <tr> <td>2020</td> <td>$3,185</td> <td>$2,944</td> <td>94.91%</td> <td>$158</td> <td>5.09%</td> </tr> <tr> <td>2018</td> <td>$885</td> <td>$885</td> <td>100.00%</td> <td>$0</td> <td>0.00%</td> </tr> <tr> <td>2016</td> <td>$2,909</td> <td>$2,551</td> <td>87.69%</td> <td>$358</td> <td>12.31%</td> </tr> <tr> <td>2014</td> <td>$0</td> <td>$0</td> <td>0.00%</td> <td>$0</td> <td>0.00%</td> </tr> <tr> <td>2004</td> <td>$6,700</td> <td>$200</td> <td>2.99%</td> <td>$6,500</td> <td>97.01%</td> </tr> <tr> <td>2002</td> <td>$48,000</td> <td>$0</td>

In August 2024, Michaels said a vendor added an AI-generated layer to a Halloween wolf print without its knowledge. The company said it would remove the product and refund buyers. After online users questioned other designs, Michaels said those works were created by real artists and licensed for use; the article said vendor controls remained unclear.

You decide AI & automation
Sources
https://www.fastcompany.com/91168386/michaels-says-it-accidentally-sold-ai-halloween-art
works with outside vendors who supply goods and artwork. It's unclear how much control Michaels has over how its vendors produce their products. A bigger AI backlash While Michaels was working to remove the wolf canvas art from its website and stores, the topic began to gain steam on TikTok, leading to a new batch of videos digging into the rest of the company’s fall catalog. One user analyzed some canvas prints of spooky houses, arguing that details like asymmetry and unusual stylization point to AI use, and another found prints of candles, a cat, and a witch that she believed to be computer-generated. Fast Company circled back to Michaels for additional clarification on these examples.  “As the largest arts and crafts retailer in North America, Michaels will always support and prioritize artists in all the mediums they use to create,” the company responded in a statement. “This artwork was all created by real artists and was licensed for use by the artist and creator of the artwork.” The backlash against Michaels comes amid a greater discussion of how AI tools should (or shouldn’t) be integrated into creative practices, especially when profit is involved. AI tools are certainly becoming more ubiquitous for digital artists, as features like Adobe Firefly offer advantages for brainstorming new concepts and cutting down on production time. Attempting to stop the wave of AI tech now is a moot point—but calls for transparency around AI usage are getting louder.  Earlier this summer, Etsy committed to adding new tags to products to clarify a seller’s role in the creation process, as well as debuting a series of vaguely anti-AI ads highlighting the importance of human artists. And last month, artists across social media took to labeling their work with a “Created With Human Intelligence” badge to show that human creators won’t be replaced by AI image generators.  Michaels has admitted only to discovering an AI image layer in the wolf print, emphasizing that it “prioritizes artists.” Still, the controversy highlights a deeper worry from the creative community that art-based companies may begin turning to AI without their knowledge. If major craft stores want to maintain customer trust, it may be time to implement clear guidelines and labeling to let buyers know how their purchases were created.

Nea Vizcarra sued Michaels in federal court in California, alleging that the chain deceptively advertised discounts on products that were always available for at least 20% below the stated regular price. In January 2024, a judge said her allegations plausibly supported consumer-protection claims; the supplied account does not report a final outcome.

Against Corporate conduct
Sources
https://news.bloomberglaw.com/litigation/michaels-customer-advances-fake-sale-suit-against-crafting-chain
Nea Vizcarra sued in the US District Court for the Northern District of California, saying the crafting and home-decor chain deceptively advertises its products as discounted even though they are always available for at least 20% less than the purported “regular” price.

In March 2025, a federal court ruled against most claims by former temporary warehouse worker Joseph Vigil, who alleged Michaels failed to provide proper pay and breaks. The court said he abandoned some claims by not opposing Michaels’ motion and admitted receiving some disputed breaks. Michaels did not seek dismissal of his expense-reimbursement claim.

Against Labor & working conditions
Sources
https://news.bloomberglaw.com/daily-labor-report/michaels-beats-most-wage-claims-in-ex-warehouse-staffers-suit
A distribution unit of craft-store chain Michaels defeated most claims in a lawsuit alleging it failed to provide proper pay and breaks to a temporary worker assigned to a California warehouse.

An individual filed an NLRB charge against The Michaels Organization on December 27, 2023, alleging unlawful discharge and retaliation involving concerted activity. The case, assigned to the agency’s Philadelphia region and located in Camden, was marked closed; the docket lists an NLRB General Counsel dismissal letter dated February 15, 2024. The record does not detail the allegations.

Against Labor & working conditions
Sources
https://www.nlrb.gov/case/04-CA-332559
8(a)(3) Discharge (Including Layoff and Refusal to Hire (not salting))
About & ownership
Category
Specialty Retailers
Website
michaels.com
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