Fast food company Taco Bell was fined thousands of dollars after an investigation into gift cards that its customers couldn’t cash.
Los Angeles District Attorney’s Office reported this Thursday that “Taco Bell and its subsidiary were ordered to pay $85,500 to settle a lawsuit alleging the company denied customers cashing in gift cards under $10.”
The lawsuit involving Los Angeles, Ventura and Sonoma counties alleged that Taco Bell did not allow customers to cash out their gift card funds if they had less than $10.
In California, the law says that “anyone who has a gift card with a balance of less than $10 can obtain a refund from the provider if the customer does not wish to use the remaining balance,” according to the statement.
“Businesses have a responsibility to honor their customers’ gift cards, regardless of the amount. This agreement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly,” said District Attorney Geroge Gascón.
Taco Bell will have to pay $45,000 in fines, $35,500 for investigation costs, and $10,000 will go to the California Consumer Protection Prosecution Trust Fund.
In addition, the company will have to put up a public sign near all ATMs stating that people can cash out their gift cards if they have less than $10.
