Legal Question in Consumer Law in California

Law concerning gift cards (CA)

In Calif, I've heard there's a law that allows gift cards to be turned in for CASH, as opposed to merchandise, and would like to know exactly what to cite in case the merchant doesn't believe this exists. Thank you!


Asked on 4/27/06, 10:59 pm

1 Answer from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

Re: Law concerning gift cards (CA)

You are incorrect. The following information comes form the website for the California Department of Consumer Affairs:

Q.4. Can the holder of a gift certificate or gift card redeem it for cash?

A. This depends on the policy of the seller. The gift certificate law states that a seller must redeem a gift certificate or gift card sold after January 1, 1997 for its cash value, or replace it with a new certificate or card at no cost. However, California�s Legislative Counsel has concluded that a seller is not required to redeem a gift certificate in cash when requested by a consumer. Thus, some gift certificate sellers redeem the gift certificate for cash or a combination of merchandise and cash, while some issue a new certificate for any balance remaining after the original certificate is redeemed. A gift certificate or gift card without an expiration date is valid until it is redeemed or replaced.

Sometimes, a gift certificate or gift card is sold to the purchaser as a gift for another person (the �recipient�). In this case, the seller may choose to state a date on the gift certificate or gift card by which the recipient must redeem it. Since an expiration date normally is not permitted by the gift certificate law, a seller that chooses to state a redemption date on a gift card or gift certificate must give the purchaser a full refund of the amount paid for the certificate or card if the recipient does not redeem it by the redemption date.

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Answered on 4/27/06, 11:25 pm


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