Taco Bell Lived a Little Too Más and Got Slapped for Violating This Gift Card Law
Taco Bell has to pay an $85,500 fine over a gift card law violation.
The California Civil Code allows gift card holders to redeem cards with a balance of less than $10 for a refund.
Taco Bell also used to have a Chihuahua mascot, whose real name was Gidget. That doesn't really apply to this, but this is a pretty cut-and-dry story, and we wanted a third bullet point.
Look, we get it: gift card laws are kind of confusing. Just remember that dustup from earlier this year, where somebody tried to redeem a Target gift certificate from 1994, couldn't do it, and a bunch of internet "experts" kept yelling, "It's the law!!!" even though it definitely isn't.
And we don't blame those ordinary folks for not having the firmest grasp of the ins and outs of the various state and federal laws related to gift cards. (Except that one kind of unhinged fellow who emailed this author directly to say that "money is money, and you clearly don't understand economics" which... to be fair, I don't, but that's hardly the issue here).
We don't blame the individual. But on the other hand, if you're a massively successful company that routinely issues gift certificates? Yeah, you should probably know the laws that pertain to gift cards.
And as it turns out, Taco Bell needed a bit of a reminder.
In one of the biggest blunders since firing Gidget the Chihuahua as its mascot, it turns out Taco Bell will have to pay an $85,500 fine after violating California's gift card laws.
As reported by WANE, "According to California Civil Code 1749.5, the owner of a gift card with a balance of less than $10 can obtain a refund from the merchant if they do not wish to spend the remaining balance."
The settlement terms Taco Bell is set to pay break down as "$45,000 in civil penalties, $30,500 in investigative costs, and $10,000 to the California Consumer Protection Prosecution Trust Fund."
"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, the Ventura County senior deputy district attorney. "In California, consumers have the right to receive unspent gift card amounts less than $10 so that they can use that money as they wish."
But look, when someone makes a mistake, it's important not to let that whoopsie resulting in a five-figure settlement cloud our memories of the good times. Like, remember that time Taco Bell teamed up with KFC and Pizza Hut to promote Star Wars: Episode I- The Phantom Menace? And since Pizza Hut didn't have a mascot, they just made up "Pizza Hut Girl" solely for promotion? And Colonel Sanders held a lightsaber? Man, those were good times.
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