I don't know if anyone at TJ Maxx even understands that these are not items they can sell, as they don't work anymore. I think they think they're just fancy watches.
They will get a fraction returned. So, they still profit.
Big companies like that need fines big enough to risk closing them down for doing stuff like this. No reason for them to care otherwise.
They either know, or have purposefully arranged things so the people who know enough aren't burdened with knowing everything. Neither is acceptable.
They could be idiots who don't know what they're doing, but then they wouldn't still be in business.
I returned cheap electronics to a UK store recently, it was very clear the entire batch didn't work, indeed it was probably why they were on offer. People will say "oh it was only a couple of quid, won't bother taking it back". Still on sale. I wouldn't be surprised if they hadn't reshelved the non-working ones I returned.
US Federal Trade Commission, https://www.ftc.gov/system/files/documents/public_statements... (1983)
> The basic question is whether the act or practice is likely to affect the consumer's conduct or decision with regard to a product or service. If so, the practice is material ... because consumers are likely to have chosen differently but for the deception ... the Commission will find deception if there is a representation, omission or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer's detriment.