LOS ANGELES, CA – Chipotle Mexican Grill has reached a settlement in a lawsuit regarding gift card cash redemption rights for California consumers. The lawsuit alleged that the company’s policy did not comply with California law allowing refunds for gift cards with balances under $10.
Los Angeles County District Attorney Nathan J. Hochman confirmed Chipotle must offer refunds for gift cards under that limit. The final judgment from Ventura County Superior Court totals $246,000, which includes civil penalties and investigative costs.
Consumers will now have a more accessible process through a dedicated website portal for requesting refunds. Chipotle is required to update its gift certificates with information notifying consumers of their rights regarding cash redemption.
The company will not utilize consumer information from gift card redemptions for other purposes without consent. The lawsuit involved collaboration from various district attorney’s offices, including those in Los Angeles, Shasta, and Sonoma counties.