Gift cards are a popular and convenient way to shop, but what happens if your card expires, has hidden fees, or gets lost? California has strong consumer protection laws that safeguard gift card holders from unfair practices. In this blog post, we will explore California’s gift card laws, including expiration rules, fees, and your rights as a consumer.
Key Gift Card Laws in California
California has some of the strictest protections for gift card holders under California Civil Code § 1749.5. These laws prevent unfair practices by businesses and ensure that consumers get full value from their gift cards.
No Expiration Dates on Most Gift Cards
- In California, most gift cards cannot expire.
- Exceptions apply to promotional or incentive-based gift cards (such as rebate cards), which may have expiration dates.
No Fees for Gift Card Usage
- Businesses cannot charge fees for using, maintaining, or inquiring about a gift card balance.
- Exception: If a gift card is used at an ATM or third-party processor, transaction fees may apply.
What Happens to Unused Gift Cards?
Many consumers forget about their gift cards or leave small balances unused. In California, you still have rights.
Gift Cards with Less Than $10 Can Be Cashed Out
- If your gift card balance is $9.99 or less, you have the right to request cash back from the business.
- Businesses cannot refuse to cash out small balances.
What If a Business Closes or Declares Bankruptcy?
- If a business closes permanently, gift card holders may lose their money unless they file a claim in bankruptcy court.
- In some cases, gift card balances may be honored if another company buys the business.
How to Protect Your Gift Card Rights
- Use gift cards promptly to avoid potential issues with store closures.
- Report violations to the California Attorney General’s Office or the Department of Consumer Affairs.
- Keep receipts and records of gift card purchases to prove ownership.
California law provides strong protections for gift card holders, ensuring no expiration dates, no hidden fees, and cash-out rights for small balances. If you believe a business has violated your gift card rights, Law Advocate Group, LLP can help you take legal action. Contact us today for expert legal advice.
