Taco Bell has been ordered to pay $85,500 to settle a lawsuit alleging the company denied customers from cashing out gift cards less than $10, according to the Los Angeles County District Attorney’s Office.
“Businesses have a responsibility to honor their customers’ gift cards, regardless of the amount,” District Attorney George Gascón said in a news release. “This settlement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly,”
The legal action was brought by district attorney’s offices in Los Angeles County, Ventura County and Sonoma County.
“Businesses have a responsibility to honor their customers’ gift cards, regardless of the amount,” Los Angeles County District Attorney George Gascón said in a statement. “This settlement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly.”
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.
Taco Bell, 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.