CALIFORNIA – The Los Angeles County District Attorney’s Office announced on October 23 a settlement with Chipotle Mexican Grill over allegations the chain failed to allow customers to cash out gift cards with balances under $10.
Chipotle operates more than 500 locations in California.
Los Angeles County District Attorney Nathan J. Hochman said gift cards are real money purchased with hard-earned cash.
“California law is clear that consumers have the right to redeem gift cards with a balance under $10 for cash,” Hochman said.
Chipotle must issue refunds
Under the settlement, Chipotle must create and maintain a website portal, where consumers can request a refund for any card that carries a balance of less than $10.
Chipotle must also ensure all new gift cards, including those sold through third parties, display a notice informing California consumers that cards with a balance under $10 can be redeemed for cash.
The notice must include the website where consumers can obtain the refund.
Chipotle is prohibited from using information collected during gift card redemptions for unrelated purposes, such as advertising or marketing, without the consumer’s consent.
Chipotle has denied any wrongdoing
The final judgment, entered in Ventura County Superior Court, totals $246,000.
It includes $145,467 in civil penalties, with $36,367 awarded to the Los Angeles County District Attorney’s Office. The court also ordered $88,533 in investigative costs, including $20,000 to the same office.
Additionally, $12,000 in restitution will go to the California Consumer Protection Prosecution Trust Fund to support future consumer protection investigations and enforcement efforts under the state’s unfair competition laws.
In the judgment, the company denied any wrongdoing.
Request a refund
To obtain a refund, California consumers must enter their gift card’s identifying information.
The website portal where customers can request a refund for any card that carries a balance of less than $10 is located at chipotle.com/gift-card-cashback.
