LOS ANGELES – Taco Bell and its subsidiary have been ordered to pay $85,500 to settle a lawsuit that alleges the company denied customers from cashing out gift cards less than $10.
“Businesses have a responsibility to honor their customers’ gift cards, regardless of the amount. This settlement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly,” District Attorney Gascón said. “We will continue to hold businesses accountable for actions that harm consumers and protect the rights of the people in Los Angeles County.”
The complaint was filed in Ventura County on behalf of the district attorney’s offices in Los Angeles, Sonoma and Ventura counties. It alleges that Taco Bell did not allow customers in California the ability to redeem its gift cards under $10. California law states that anyone who has a gift card with a balance worth less than $10 can get a refund from the provider if the customer doesn’t want to use the remaining balance.
The company, which admits no wrongdoing as part of the settlement, will pay $45,000 in penalties, $30,500 in investigative costs and $10,000 will go to the California Consumer Protection Prosecution Trust Fund.
As part of the settlement, Taco Bell must post a visible notice near each of its restaurant’s cash registers advising customers of their right to redeem gift cards and providing information to obtain the redemption.
Additionally, Taco Bell gift cards must include a link to the company’s redemption website and the company must provide annual training to its store managers about gift card laws in California.