Taco Bell broke law by refusing to cash out customer gift cards, California lawsuit says
Taco Bell denied customers cash refunds on unspent gift cards, breaking a California law, state prosecutors say.
Now, it will pay a $85,000 fine.
The complaint, filed by district attorneys in Ventura, Los Angeles and Sonoma counties, accused the fast-food chain of refusing customers’ rights to cash out gift cards valued under $10, the Ventura County District Attorney’s Office said in a news release.
Citing Civil Code 1749.5, prosecutors said consumers are entitled to refunds on balances of less than $10 if they don’t want to spend what’s left on a business’ gift card.
“Gift card redemption laws ensure that large corporations do not profit, at the expense of the consumer, off unspent dollars that consumers cannot or do not wish to use at that retailer,” Senior Deputy District Attorney Andrew Reid said in a statement.
“In California, consumers have the right to receive unspent gift card amounts less than $10 so that they can use that money as they wish,” Reid said.
McClatchy News reached out to Taco Bell for comment June 15 and was awaiting a response.
The $85,000 fine covers civil penalties, restitution and other costs of settling accusations laid out in the complaint, the district attorney’s office said.
A portion of the money, $10,000, will go into the state’s Consumer Protection Prosecution Trust Fund.
The judgment also requires Taco Bell to institute:
- Mandatory signage near cash registers alerting Taco Bell customers of their right to gift card redemption and how to get it.
- Messaging on Taco Bell gift cards that directs customers to its gift card redemption website.
- Annual training for Taco Bell managers and franchisees regarding California’s gift card law.
This story was originally published June 15, 2023 at 11:09 AM with the headline "Taco Bell broke law by refusing to cash out customer gift cards, California lawsuit says."