In January 2008, California’s gift card laws changed entitling the holder of a gift card, upon request, to receive cash back from a business on any gift card that has a value of $10 or less. While the change in law has been on the books for more than five years, a growing trend of lawsuits being filed for violations are occurring across California.
In many cases, a cashier or team member may not be aware of the cash-out law and have denied a customer’s request for the remaining funds on the gift card. The scenario has sparked a wave of class-action lawsuits targeting the restaurant and retail industry.
Ensure your staff members are trained to cash out gift cards with less than $10 upon customer request.
Read the CRA Industry Insight on this issue now.