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Los Angeles Times
Los Angeles Times
Business
Salvador Hernandez

Taco Bell ordered to pay up after refusing to cash out gift cards

Taco Bell, one of the nation's largest fast food chains, agreed to pay $85,500 in fines Wednesday after the company was accused of refusing to cash out customers' gift cards when they were valued at less than $10.

California law allows customers to get a refund when the balance of gift cards is less than $10, but prosecutors in Ventura, Los Angeles and Sonoma counties accused Taco Bell in a lawsuit of refusing to cash out the cards.

"Gift card redemption laws ensure that large corporations do not profit, at the expense of the consumer, off unspent dollars that consumers cannot or do not wish to use at that retailer," said Andrew Reid, senior deputy district attorney with the Ventura County District Attorney office's Office of Consumer Protection.

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