There is a state law in California which says that a gift card should be redeemed for cash if a customer has asked for it and if the gift card balance is less than $10. However, California Sunglass Hut had refused its customers a cash payout of their gift card balance when it was less than $10. Thus, people filed the Sunglass Hut class action lawsuit against the company for violating consumer rights.
Now, Sunglass Hut Trading LLC has agreed to settle the class action. The company will do the following:
- Operate only according to the Civil Code section 1749.5 within the state of California
- Edit and refresh its written policies and guidelines as well as employee manuals based on the law
- Train its employees about the law and require them to follow the guidelines provided by the law
- Verbally instruct new employees about the California state law
- Create and publish content connected with the gift card law on their website
Additionally, the company will provide remedies to all the people in the Sunglass Hut class action who have thrown away their gift cards because of being refused a cash payout. The remedy is that the customers can use the $10 gift card at all Sunglass Hut locations within California. Note that the customers will not need to purchase anything to be able to use their gift cards.
Class action members include the following two groups:
- California-based consumers who got a Sunglass Hut gift card with less than $10 on it.
- California-based consumers who possessed a Sunglass Hut gift card between Feb. 17, 2011, and Feb. 23, 2016, but got rid of it after a company employee told them they cannot redeem cash.
As a result
The class members will receive a gift card with $9.99 in it. They can use the card at all Sunglass Hut locations within California. To receive benefits from this settlement, the members of the class action must submit a valid Claim Form.