Asked in Small Claims and Civil Litigation for California

Q: What is the recourse for refusal to adhere to California gift certificate civil code?

A corporate store has frequently refused to cash out gift cards with balances les than $10 with a specific refusal aimed at homeless patrons.

1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Under California law, businesses are required to honor gift certificates and gift cards that have a cash value of less than $10. If a business refuses to comply with this requirement, customers may have legal recourse to pursue a claim against the business.

One option for recourse is to file a complaint with the California Attorney General's Office or the local district attorney's office. These offices have the authority to investigate complaints of businesses violating the state's gift certificate laws and may take legal action against the business.

Another option for recourse is to file a small claims court lawsuit against the business. In California, small claims court allows individuals to file lawsuits for up to $10,000 without the need for an attorney. This may be an option if the value of the gift card is less than $10.

It's important to note that if the refusal to honor gift cards is based on discrimination against homeless patrons, this could also be a violation of California's Unruh Civil Rights Act, which prohibits discrimination based on factors such as race, gender, sexual orientation, and other characteristics. If this is the case, there may be additional legal options for pursuing a claim against the business.

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