Home Depot settles lawsuit over gift cards

The home improvement store will pay to settle a lawsuit in California.

Home Depot has agreed to settle a lawsuit in California regarding violations of consumer protection laws related to gift card redemption.

The settlement involves Home Depot paying $750,000 to resolve the lawsuit, which accused the home improvement retail chain of not complying with California laws concerning gift card redemption policies.

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The big picture: California law requires retailers to offer a cash redemption option for gift card holders if the remaining balance on the card is below $10, aiming to protect consumers from losing the value of their payments.

  • Los Angeles County District Attorney George Gascón emphasized the importance of such laws in safeguarding consumer rights, especially during challenging times, stating that it is unacceptable for any entity to disregard these critical legal protections.
  • As part of the settlement, Home Depot denies any wrongdoing but has cooperated in the process and implemented corrective measures.

Go deeper: The $750,000 payment will cover civil penalties and investigative costs, and the Los Angeles County Superior Court has instructed Home Depot to modify its gift card transaction procedures.

  • Home Depot will now automatically provide cash redemptions for gift cards with balances under $10 at check stands and registers, and will include notices about the law on physical gift cards, online platforms, customer service areas, and returns sections in its California stores.
  • Additionally, California employees at Home Depot will receive enhanced training on gift card redemption policies to ensure compliance with consumer protection laws.
  • The lawsuit was investigated by the DA’s Office Consumer Protection Division and the Los Angeles County Department of Consumer and Business Affairs, with district attorney’s offices across the state conducting their own inquiries.
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