July 10, 2024
Contact: LA County DCBA Communications
(213) 332-6497; communications@dcba.lacounty.gov
DCBA Investigators Help District Attorney’s Office Reach $750,000 Gift Certificate Law Settlement
LOS ANGELES – Investigative work performed by the Los Angeles County Department of Consumer and Business Affairs (DCBA) as part of a statewide multiagency investigation has led to a $750,000 settlement from a large retailer accused of violating California’s Gift Certificate Law.
On July 10, 2024, Los Angeles County District Attorney George Gascόn announced that Home Depot, a home improvement retailer, will pay $750,000 in civil penalties, cy pres restitution, and investigative costs to settle a civil lawsuit alleging it violated California Civil Code Sec. 1749.5 (b)(2), which requires that a gift certificate or gift card with a cash value of less than $10 be redeemable for its cash value by its issuer.
“Consumers in Los Angeles County and across California work hard for their money and, more than ever, every dollar counts,” said DCBA Director Rafael Carbajal. “Businesses must follow the law and provide cash back to its customers when it’s allowed and requested.”
If you have a retailer’s gift certificate or gift card with value of less than $10, per California’s Gift Certificate Law, you may request the remaining value in cash. If a retailer in Los Angeles County refuses to honor this law, file a complaint with DCBA online at dcba.lacounty.gov or by calling 800-593-8222.
This investigation was conducted by the Los Angeles County District Attorney’s Consumer Protection Division in association with the Ventura County District Attorney’s Office, Sonoma County District Attorney’s Office, and Contra Costa County District Attorney’s Office.
Under a judgment negotiated with the company entered on July 2, 2024, in Los Angeles County Superior Court and signed by Judge David S. Cunningham III, Home Depot was additionally ordered to comply with the following terms:
- Program its point-of-sale registers in California that are cash-disbursing to automatically cash out gift cards with outstanding balance of less than $10.
- Include notice on its gift card and website that gift card may be redeemed for cash where required by law.
- Post notice about gift card redemption in its California stores’ Customer Service or returns area for six months.
- Provide training regarding gift card redemption to its register-trained associates and customer care associates in California.
The company did not admit wrongdoing. It was cooperative in the investigation and has taken steps to correct the violations.
Since 1975, the County of Los Angeles Department of Consumer and Business Affairs (DCBA) has been the local consumer protection agency serving County consumers, tenants, homeowners, immigrants, and workers. DCBA provides a wide range of services that aim to foster a fair and dynamic marketplace and enhance the economic wellbeing of our communities. This includes investigating consumer fraud complaints, enforcing the County’s minimum wage, tenant and worker protections, and providing access to justice programs. More information can be found at dcba.lacounty.gov or by calling (800) 593-8222.
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