Home Depot Settles Consumer Protection Lawsuit

LOS ANGELES — Los Angeles County District Attorney George Gascón announced July 9 that Home Depot will pay $750,000 to settle a civil lawsuit alleging violation of a state law mandating cash redemption for gift cards under $10.

“This law exists to safeguard the rights of hardworking individuals who may find themselves in need of the money they paid, especially during challenging times,” District Attorney Gascón said. “It is unacceptable for any entity to disregard such crucial legal protections, and our office takes allegations of consumer rights violations very seriously.”

The settlement goes toward civil penalties, cy pres restitution, and investigative costs. Under a judgment negotiated with the company at Los Angeles County Superior Court and signed by Judge David S. Cunningham III on July 2, the company was additionally ordered to comply with the following terms:

• Program its point-of-sale registers in California that are cash-disbursing to automatically cash out gift cards with outstanding balance of less than $10.
• Include notice on its gift card and website that gift card may be redeemed for cash where required by law.
• Post notice about gift card redemption in its California stores’ Customer Service or returns area for six months.
• Provide training regarding gift card redemption to its register-trained associates and customer care associates in California.

The company did not admit wrongdoing. It was cooperative in the investigation and has taken steps to correct the violations.

LADA’s Consumer Protection Division and the Los Angeles County Department of Consumer and Business Affairs investigated the gift card cases in Los Angeles County, while the Ventura County District Attorney’s Office, Sonoma County District Attorney’s Office and Contra Costa County District Attorney’s Office investigated in their respective counties.