Sonoma County DA Announces Settlement With Taco Bell Over Gift Card Violations

SONOMA COUNTY, CA — The Taco Bell Corporation must pay $85,000 for violations of California's Gift Card regulations, Sonoma County District Attorney Carla Rodriguez announced this week.

The money includes civil penalties, restitution, and costs to resolve allegations involving the redemption of gift cards with a value of less than $10.

The case filed in Ventura County on behalf of the district attorney’s offices in Ventura, Los Angeles and Sonoma counties, alleged that Taco Bell, its franchisees, and its corporate agents unlawfully denied California consumers the right to cash out Taco Bell gift cards worth less than $10.

Under California civil code section 1749.5, retailers are required to redeem in cash for its cash value, a gift card with a balance of less than $10.

"My office is committed to working with other law enforcement offices throughout California to ensure that consumers are protected and corporations follow the law," Rodriguez said.

The are multiple Taco Bell locations in Sonoma County: one in Petaluma, two in Rohnert Park, one in Sebastopol, several in Santa Rosa, one in Sonoma, one in Cloverdale and one in Windsor.

Under the terms of a settlement with the three California counties, Taco Bell Corporation will pay $45,000 in civil penalties, $30,500 in investigative costs, and $10,000 in restitution.

The settlement also prohibits Taco Bell from violating Civil Code 1749.5 and requires Taco Bell’s corporate and franchise stores to post a visible notice near each store’s cash register advising consumers of their right to gift card redemption and the proper method to obtain the redemption.

The settlement also requires that Taco Bell’s gift cards carry a message directing consumers to Taco Bell’s gift card redemption website to streamline consumers' ability to obtain a gift card redemption under section 1749.5.

Finally, the judgment orders Taco Bell to provide annual training about California gift card law to its store managers and franchisees, and further requires Taco Bell to monitor both corporate and franchise restaurant locations for compliance.