SoCal resident files class action against Fandango over $10 movie credit expiration

CALIFORNIA – A Southern California resident has filed a lawsuit against Fandango, alleging that the company’s advertisements for a $10 movie credit mislead consumers into believing it does not expire.

Fandango is an online company that sells movie tickets and streaming content. It also sells a “Fandango FanClub” membership.

According to Fandango, a membership offers several benefits. This includes “$10 toward a movie ticket each month – any movie, any showtime, any format.”

However, the credits expire 30 days after issuance.

“So, customers cannot use the $10 credits they receive each month for “any movie” at “any showtime” in the future. They can only use them for movies playing within the next 30 days after the credits are issued,” said the plaintiff in the court document.

California’s Gift Card Law prohibits expiration dates on gift cards

The plaintiff also argues that Fandango violates California’s Gift Card Law.

California Civil Code § 1749.5 states that it is unlawful for any person or entity to sell a gift certificate to a purchaser if it includes an expiration date.

The law also states that if a gift card has a remaining balance of less than $10, businesses are required to redeem that balance for cash upon request.

Service fees, including dormancy or inactivity fees, are generally prohibited on gift cards in California with a few specific exceptions.

The plaintiff says that Fandango’s expiring credits also violate the federal Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”) that generally prohibits the sale or issuance of gift certificates or store gift cards with expiration dates of less than five years from the date of issuance.

Fandango agreed to a $9 million settlement in New York

The plaintiff is asking the court to certify the claims as a class action which would include all affected individuals – the “class” who experienced the same alleged harm.

He is also asking for all available monetary forms of recovery, including restitution, and other just equitable relief.

Fandango recently agreed to a $9 million settlement to resolve claims it failed to disclose convenience fees for New York movie tickets in violation of New York’s Arts and Cultural Affairs Law.