Yahoo Finance Taco Bell to pay $85,000 for gift card violations
Taco Bell has been ordered to pay the price for putting a damper on some customers’ Taco Tuesday festivities – to the tune of $85,000.
Los Angeles District Attorney George Gascón announced the decision in statement on Thursday, saying the fast food giant was accused of refusing to honor gift cards with a value of less than $10.
The complaint, filed for the district attorney’s offices in Los Angeles, Sonoma and Ventura counties, alleged that Taco Bell broke a California law which entitles customers to cash out gift cards worth $10 or less if they choose not to use the remaining balance.
While Taco Bell admitted no fault as part of the settlement, the company agreed to pay $45,000 in penalties, $35,000 in investigation fees and $10,000 to go toward the California Consumer Protection Prosecution Trust Fund.
Taco Bells Crocs collaboration Taco Bell and Crocs team up to give us the slides of the summer
The chain will also be required to prominently display notice in their stores of the customer’s right to redeem gifts cards and provide steps on how to do so. The gift cards themselves must also include links to the redemption website and managers will be mandated to attend yearly trainings on relevant laws in the state of California.
“This settlement sends a clear message that companies like Taco Bell must abide by the law and treat their customers fairly,” said Gascón. “We will continue to hold businesses accountable for actions that harm consumers and protect the rights of the people in Los Angeles County."
A force in fast food
A subsidiary of Yum! Brands, Taco Bell operates over 7,200 stores across the nation and serves upward of 40 million customers per week, according to the Yum! Brands website.
Taco Bell Crunchwrap deals Taco Bell giving away free Breakfast Crunchwraps on Tuesdays in June: How to get one
Though the recent decision in California did not end in the brand’s favor, it is unlikely to slow things down for the company. Taco Bell is currently working on expanding its over 1,000 international locations in 30 countries and is constantly announcing new gimmicks, sales and menu items.
Just recently, they teamed up with Crocs to release a pair of slide shoes for the summer and even released a line of street fashion-inspired uniforms. Taco Bell also pleased customers by adding the promotional grilled cheese burrito to the permanent menu and introducing a new Vegan Crunchwrap for taco lovers with dietary restrictions.
This article originally appeared on USA TODAY: Taco Bell fined $85,000 gift card redemption errors in California
