Taco Bell Fined for Denying Customers the Use of Gift Cards Under $10

The Los Angeles District Attorney's Office is fining the popular food chain thousands after violating California gift card laws

The edict in a recent lawsuit against Taco Bell? Pay más.

The fast food chain was ordered to pay tens of thousands of dollars after denying its customers to use their gift cards valued at less than $10, Los Angeles District Attorney George Gascón announced on June 15.

“Businesses have a responsibility to honor their customers' gift cards, regardless of the amount. This settlement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly,” Gascón said in a statement.

Prosecutors allege that Taco Bell did not accept gift cards from customers worth less than $10 in California. The complaint was filed in Ventura County on behalf of the district attorney’s offices in Los Angeles, Sonoma and Ventura counties.

Related: Taco Bell Is Giving Away Free Breakfast Crunchwraps Every Tuesday in June

According to California law, "Anyone who has a gift card with a balance worth less than $10 can get a refund from the provider if the customer doesn’t want to use the remaining balance."

Therefore, Gascón said they "will continue to hold businesses accountable for actions that harm consumers and protect the rights of the people in Los Angeles County." In doing so, the company — which admits no wrongdoing as part of the settlement — is being held accountable.

The L.A. District Attorney's Office is asking Taco Bell to pay $45,000 in penalties and $30,500 in investigative costs, while $10,000 of the totaled $85,500 will go to the California Consumer Protection Prosecution Trust Fund.

Related: Taco Bell Opens Futuristic Drive-Thru with 'Vertical Lifts' That Deliver Orders from Kitchen 

In addition, Taco Bell is required to post a visible notice by each of its restaurants' cash registers advising customers of their right to redeem gift cards with details on how to do so.

Lastly, Taco Bell gift cards must include a link to the company’s redemption website and the company must provide annual training to its store managers about gift card laws in California.

The settlement comes about one week after Taco Bell opened its newest location in Brooklyn Park, Minnesota, described as the "Taco Bell of the future."

On June 7, Taco Bell Defy officially opened its doors and drive-thru lanes for a futuristic dining experience.

A video shared on Taco Bell's Instagram shows off the company's new "vertical lift feature, "which the narrator in the Instagram video unofficially calls the "food tube." It transports food directly directly to customers through a chute.

The new location also has a four-lane drive-thru and is the first Taco Bell two-story model, all in service of the brand's stated goal for Taco Bell Defy to serve customers in 2 minutes or less.

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