Sam’s Club Class Action Says Gift Cards Aren’t Properly Loaded

Sam’s Club doesn’t properly “load” gift cards with money, but the retailer refuses to refund the credited amount, according to a class action lawsuit.

Plaintiff Steven Lockwood says that on two occasions in 2017 he attempted to purchase gift cards from the discount chain.

The first time, Lockwood alleges that he purchased two Disney gift cards for $144.98 each and an additional American Express gift card for $500.

The amounts were never loaded on these cards, but Lockwood says he was eventually paid back.

The Sam’s Club class action lawsuit states that the problem arose when Lockwood attempted to purchase gift cards a second time.

According to the Sam’s Club class action lawsuit, the plaintiff purchased the gift cards again, but this time he left the store without the gift cards in his possession despite having paid more than $700 for them.

According to the plaintiff, he went back to Sam’s Club and reviewed store tapes with a manager to establish that he had purchased the gift cards but didn’t receive them.

The manager indicated he would have to call the corporate office, however. Lockwood says that when he attempted to get a refund, Sam’s Club corporate office refused.

“Defendant represents that it will sell Class Products to Plaintiff and other consumers through prominent placement of the Class Products in its stores,” alleges the Sam’s Club class action lawsuit.

“Plaintiff and consumers rely on these representations in deciding to purchase the Class Products from Defendant. Such sales tactics employed on Defendant rely on falsities and have a tendency to mislead and deceive a reasonable consumer.”

Lockwood alleges that he is out $794.44 for the gift cards he purchased at Sam’s Club and that other consumers have faced the same problem.

“Such representations were part of a common scheme to mislead consumers and incentivize them to purchase Class Products from Defendant under the false belief that Defendant would properly load the Class Products with value instead of keeping the money without providing any value,” asserts the Sam’s Club class action lawsuit.

The Sam’s Club class action lawsuit seeks to represent Californians who purchased gift cards at the discount warehouse, but did not receive the proper credit on those gift cards and were not refunded for the improper loading of the cards.

The plaintiff is seeking damages as well as a court order requiring Sam’s Club to conduct a corrective advertising campaign informing consumers of its allegedly deceptive practices surrounding gift cards.

“In reasonable reliance on Defendant’s false advertisements, Plaintiff and other Class Members purchased Class Products from Defendant based on these representations,” the Sam’s Club class action lawsuit states. “In reality, Defendant did not put value onto the Class Products and instead took Plaintiff’s money for nothing.”

The plaintiff and proposed Class are represented by Todd M. Friedman of the Law Offices of Todd M. Friedman PC.

The Sam’s Club Gift Cards Class Action Lawsuit is Lockwood v. Sam’s West Inc., Case No. 5:19-cv-00464, in the U.S. District Court for the Central District of California.