California Chico’s Gift Card Refund Class Action Settlement

A Chico’s class action settlement is now offering new gift cards for a limited number of current and former Chico’s gift card holders in California.

Plaintiff Diana Calleros claims that defendant Chico’s FAS Inc. has been unlawfully refusing to redeem its own gift cards for cash when the balance on the card is less than $10. By refusing these refunds, Calleros believes Chico’s has been violating California state law governing the use of gift cards and gift certificates.

Effective Jan. 1, 2008, California gift card rules say any gift card or gift certificate with a value of less than $10 is redeemable for its cash value. The card holder can receive the card’s value in either currency or a check; they need not accept a new gift card or store merchandise.

With some exceptions, other California gift card rules also generally prohibit the use of expiration dates with gift cards and gift certificates. They also generally prohibit service fees in association with the purchase or use of gift cards, though there are certain specific exceptions to that rule as well.

These California gift card and gift certificate rules cannot be waived. The owner of the card or certificate remains protected by these rules even if the retailer purports to contract out of them.

Under terms of the Chico’s gift card settlement, Chico’s will issue new gift cards worth $9.99 each to the first 420 Class Members who file valid and timely claims. These cards and vouchers are limited to one per household.

Chico’s also agrees to update the software in its point-of-sale computer system so that it will automatically issue a cash refund for gift cards with a balance of $10 or less. The company will also update its employee manual and training materials so that they instruct workers to issue refunds for gift card balances of $10 or less.

Chico’s continues to deny Calleros’ allegations. The company says it has agreed to this class action settlement to avoid the expense and risk of prolonged litigation. The settlement does not require Chico’s to admit any fault, and the court has made no decision on liability.

Who’s Eligible

The settlement Class includes all California consumers who have a Chico’s gift card with a balance of less than $10, or those who had such a gift card from July 28, 2012 through March 27, 2017 and disposed of it after being told by a Chico’s employee that it could not be redeemed for cash.

Potential Award

$9.99 eGift Card or Personalized Merchandise Voucher

The first 420 qualifying Class Members who submit valid and timely claims can receive a new eGift Card or Personalized Merchandise Voucher worth $9.99, good at any Chico’s location in California. Cards and vouchers are limited to one per household.

Proof of Purchase

Claimants must submit their contact information and declare under penalty of perjury that they meet the qualifications for settlement benefits. Claimants must consent to being contacted by Chico’s or its attorneys to verify their claim. Chico’s reserves the right to verify claims.

Claim Form

CLICK HERE TO FILE A CLAIM »

All claims must be submitted online through the settlement administrator’s website.

Claim Form Deadline

11/22/2017

UPDATE: October 2017, the settlement claims period ended early since 420 qualifying claims were submitted to the settlement administrator. 

Case Name

Calleros v. Chico’s FAS Inc., Case No. 16CV03271, in the Superior Court for the State of California, County of Santa Barbara

Final Hearing

The settlement has already received final approval, according to the settlement administrator’s website.

Settlement Website

www.CGCsettlement.com

NOTE: October 2017, the settlement website is no longer accepting claims and is no longer active.

Claims Administrator

Contact information for the settlement administrator is not available on the settlement website.

Class Counsel

Phillip R. Poliner

Defense Counsel

Jeffrey B. Margulies