Chipotle settles gift card lawsuit – here’s how to get your refund

Chipotle Fans may be left with some windfall cash gift card After the fast food giants settled in trial.

The beloved Tex-Mex chain has agreed to settle a consumer-protection lawsuit California State officials accused them of failing to allow customers with balances less than $10 to redeem gift cards.

Chipotle, which operates more than 500 restaurants in California, agreed to pay a total of $246,000 as part of the settlement, officials announced Thursday.

The payment includes $145,467 in civil penalties, $88,533 to cover investigative costs, and $12,000 in restitution to the California Consumer Protection Prosecution Trust Fund.

Of that amount, a little more than $56,000 will be directed to the Los Angeles County District Attorney’s Office, according to officials.

Chipotle should also make it easier for customers to get Refund For small balance gift cards. company necessary to create online portal Where customers in California can request a cash refund for cards with balances less than $10. It will initially be available here https://www.chipotle.com/gift-card-cashback.

It also must update new gift cards to clearly state that customers in California have the right to redeem them for cash if the balance is less than $10.

The main allegations center on a California law that requires businesses to allow gift card holders to withdraw balances of less than $10. Prosecutors claimed that Chipotle refused to provide cash redemption when the remaining value of the gift cards fell below that limit.

While Chipotle did not admit wrongdoing, it cooperated with authorities and accepted the terms of the settlement.

“Gift cards are real money purchased with hard-earned money,” Los Angeles County District Attorney Nathan Hochman said in a statement. statement About the agreement. “California law is clear that consumers have the right to redeem gift cards with a balance less than $10 for cash,” he said.

Rafael Carbajal, director of the Los Angeles County Department of Consumer and Business Affairs, said, “Consumers are at the mercy of every penny in today’s economy and should never have to fight for rights guaranteed under state law. This settlement makes clear that Los Angeles County will hold businesses accountable when they fail to follow consumer laws.”

Independent Chipotle has been contacted for comment.