Home Depot Pays $750,000 To Settle California Gift Card Law Violations

District Attorney Carla Rodriguez announced today that her office, in conjunction with the District Attorneys of the Counties of Los Angeles, Contra Costa and Ventura, settled a civil enforcement action against Home Depot U.S.A., Inc (“Home Depot”) for violations of California’s Gift Card Law. The Stipulated Judgment entered on July 2, 2024, by Los Angeles County Superior Court Judge David S. Cunningham III, provides that the company will pay $750,000 in civil penalties, fees, and restitution.

The California Gift Card Law (Civil Code Section 1749.5) provides that gift cards shall not contain an expiration date and that consumers are entitled to redeem in cash any gift card with a cash value of less than ten dollars ($10). An investigation revealed that Home Depot did not redeem gift cards under ten dollars ($10) when requested in numerous stores. Home Depot cooperated with the investigation.

District Attorney Carla Rodriguez stated, “Our office seeks to ensure that businesses comply with laws that are enacted to protect consumers. It is important the consumers understand that they have the right to receive cash payment of balances on gift cards under ten dollars ($10).”

In addition to the monetary provisions, the Judgment orders Home Depot to comply with the following additional terms:

• Program point-of-sale registers that are cash-disbursing to automatically cash out gift cards with outstanding balances of less than ten dollars ($10).
• Include notice on gift cards, in-store, and on its website that gift cards may be redeemed for cash where required by law.
• Provide employee training regarding gift card redemption.
• Post Notices at their in-store Customer Service desk about gift card redemption.

Consumers may redeem Home Depot gift cards with a balance of under ten dollars ($10) in store. To check the balance of a gift card see: https://www.homedepot.com/c/Gift_Cards.

This case was prosecuted by Deputy District Attorneys Caroline Fowler and Jessica Washington.

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