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I Didn’t Even Know This….

January 29, 2014

DID YOU KNOW…..As a business owner and employee it is unlawful to refuse to redeem for cash when the certificate value is less than $10?

Provided by the CRA:

If your restaurant sells gift certificates, follow these simple rules to avoid violation of the law:

  1. Don’t provide an expiration date. The certificate must remain valid and redeemable until used, redeemed for cash, or replaced with a new gift certificate.
  2. Don’t charge a service or dormancy fee. Fees are not permissible except in limited situations and subject to strict rules as promulgated in Section 1749.5(e).
  3. If the gift certificate is for less than $10 or when the value drops below $10, the purchaser or holder is entitled to receive the face value in cash, even if no purchase is made.

Different rules may apply to promotional and discount certificates.

To read the entire law take a look at  Civil Code Section 1749.5

3 Comments leave one →
  1. stevendkchu permalink
    February 1, 2014 5:36 am

    Does this apply only to the state of California? Or are there other states that have a similar rule?

    • February 4, 2014 8:33 am

      Thank you for your comment. From my research I have only come across this in California.

      • stevendkchu permalink
        February 12, 2014 10:48 am

        Thank you.

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