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’s Office of Consumer Protection.

Taco Bell agreed to the fines as part of a stipulated judgment approved by the court Wednesday.

The agreement prohibits Taco Bell from violating the state’s gift card law and requires the company to post in all franchise locations a sign notifying customers about their rights to redeem gift cards.

Taco Bell’s gift cards also will be required to include directions to a gift card redemption website, to make cashing out the cards easier. Employees at the company will be required to receive annual training on California’s gift card laws.

Taco Bell did not immediately respond to a request for comment.