California Gift Card Law and Disneyland

[dtnrhi]

I was surfing the web last night and came across an interesting California Law:

California Civil Code Sections 1749.45-1749.6

"Effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value. Cash for purposes of this section includes currency or check. Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed."

So, if I am understanding this correctly, I can take my small gift cards I have with me in Arizona ($5 McDonalds, for example) and request $5 cash from a California McDonald's?

In addition... I view this as a way to get stuff at carts in Disneyland using gift cards - even if they don't accept them! Starting with a $25 card, buy lunch, and then get the difference in cash (>$10) from Disney, and spend that at the carts that would have otherwise needed another form of payment.

This opens so many doors. Has anybody tried to take advantage of this provision of law?

 

[SMD]

It doesn't say they have to redeem the gift card at the register. It doesn't say they can't require you to do it by mail. And I'm pretty sure it only applies to gift cards purchased in California.

 

[madigraham]

I have gotten the difference of my card balance when there was 3$ left on the card when I purchased something at downtown Disney before. But I did not know this was a civil code and I'm a paralegal.

 

[dtnrhi]

It doesn't say they have to redeem the gift card at the register. It doesn't say they can't require you to do it by mail. And I'm pretty sure it only applies to gift cards purchased in California.

I was researching this last night. There were talks of companies making an "HQ" where you had to send a SASE with your giftcard to get a refund (eliminating any cash you would get back) but as far as I can tell, most locations do it at the registers due to past lawsuits against businesses such as Sports Authority and complaints filed against others.

 

[bcla]

If you're ever seen coupons, they often note that they have a "cash value" of anything from 1/20th to 1/100th of a cent. They have to have an address to collect these and send out cash, but obviously they get few takers who can acquire enough to be worthwhile.

There may also be a caveat that if it's known that the gift certificate/card was purchased at a discount, the amount paid (I suppose prorated) is the refund amount. They could issue the refund as a check, which makes it less convenient if you need to cash it.

http://www.dca.ca.gov/publications/legal_guides/s-11.shtml

Notwithstanding any policy of the seller, effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value. Cash for purposes of this section includes currency or check. Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.

 

[starry_solo]

You have to wait for a lead to authorize the transaction/cash out, but it can be done (I think I had like less than $1 on a gift card once that I asked to be cashed out)

 

[RSWA2]

This opens so many doors. Has anybody tried to take advantage of this provision of law?

Not sure what someone could take advantage of this law though. It's a pretty nice law to have for the consumer, I don't really want to walk around with a $3.15 starbucks gift card, that was left over from a $10 one that I got in a workplace secret santa exchange. I think that is the advantage I see and I've used that many times.

The only thing I can think of is, someone goes and buys a ton of $10 gift cards to get a cash back, like from Target, then cashes each one out. It's a lot of work and probably will cost you more in time.

 

[dtnrhi]

Not sure what someone could take advantage of this law though. It's a pretty nice law to have for the consumer, I don't really want to walk around with a $3.15 starbucks gift card, that was left over from a $10 one that I got in a workplace secret santa exchange. I think that is the advantage I see and I've used that many times.

The only thing I can think of is, someone goes and buys a ton of $10 gift cards to get a cash back, like from Target, then cashes each one out. It's a lot of work and probably will cost you more in time.

I didn't mean advantage as in "exploit". I meant it as more of "using a perk". You'd look like a giant case of fraud doing that! haha

 

[monkeymers]

I worked for both Safeway (Vons) and Starbucks. I remember when this law was passed a few years ago. At both Starbucks and Safeway, we could cash out any card that was $10 or less right there at the register. No questions as to the origin of the purchased card. Just a card, a verified balance, and then cash in hand.

Another fact, which may have been previously quoted, gift cards do not expire, ever. And no "service fee" may be associated with it. That means if you don't use the card, the company can't charge any sort of yearly service fee. If it was a $50 gift card when purchased, it will remain a $50 gift card until used.

 

[bcla]

Not sure what someone could take advantage of this law though. It's a pretty nice law to have for the consumer, I don't really want to walk around with a $3.15 starbucks gift card, that was left over from a $10 one that I got in a workplace secret santa exchange. I think that is the advantage I see and I've used that many times.

The only thing I can think of is, someone goes and buys a ton of $10 gift cards to get a cash back, like from Target, then cashes each one out. It's a lot of work and probably will cost you more in time.

I'm still wondering how it works with discounted gift cards - especially those in small amounts. Costco has a variety of gift cards for sale for a total of $100. However, they usually come in the form of two $50 gift cards or 4 $20 gift cards. I could see spending $10 worth on five gift cards and then cashing each out.

I was under the impression that if the origin of the card could be confirmed to be a discounted source, they might only prorate the refund.