The State Attorney General's Office announced Thursday that it has reached a settlement with Sears, Roebuck and Co. over a deceptive refund policy that the retailer applied to consumers who participated in its "come back cash" promotion.

In the promotion, a consumer who purchased merchandise above a qualifying amount was given a $10 or $20 award card. However, if the consumer later returned part of the purchase, the refund was reduced by a pro-rated amount, even if the unreturned merchandise was valued above the qualifying amount or if the customer did not cash the award.

Sears agreed to pay $150,000 in fines and has already reformed the policy. Sears, headquartered in Illinois, operates 45 stores in New York.