Coinstar Gift Card Class Action Settlement

A settlement has been reached with Outerwall Inc. better known as Coinstar. The settlement is part of a class action lawsuit that alleged Coinstar violated Washington’s Gift Card Act and Consumer Protection Act due to their thermal-printed Gift Cards allegedly fading or darkening, rendering the card unreadable and unusable.

The Gift Card from Coinstar is also referred to as an e-certificate or a “Coin to Card” gift card, and these papers are printed at the Coinstar kiosks. The settlement only applies to those gift cards or e-certificates printed on thermal paper, not any plastic gift cards or cash vouchers issued from Coinstar.

According to the lawsuit, the gift certificates expired when the paper they were printed on faded and were no longer redeemable by the consumer after a very short period of time.

“Coinstar engaged in practices it knew would encourage Plaintiff to purchase gift certificates with an illegal exportation date, the non-redemption of which would unjustly enrich Coinstar,” the complaint read.

Under Washington law, the Gift Certificate Act prevents companies from issuing gift certificates with expiration dates. The plaintiff alleged that the gift certificates expired once they were no longer readable and could not be redeemed.

While Coinstar has agreed to settle the action, it has continued to deny all claims in the complaint and does not admit wrongdoing or liability. Coinstar jointly entered into the settlement with the Class as a means to avoid the expense, risk and uncertainty of proceeding with the legal action.

Eligible Class Members will receive an award of no less than $10 up to the entire amount available on an e-Certificate, provided that the e-certificate number is available and given.

In addition to the monetary award, Coinstar will alert consumers about the nature of the gift cards being printed on thermal paper and that the paper may fade to become unreadable if exposed to heat or light. Coinstar will also encourage customers to record their e-certificate code number and inform them of the ability to sign-up for a My Coinstar account to log the details of their transaction.

Coinstar has also agreed to calibrate all kiosks by the end of the year in Washington so that the printer settings will be optimized on the paper that the gift cards are printed on in an effort to reduce fading.

Eligible Class Members who would like to object to the settlement or opt out must do so by July 18, 2016.

Who’s Eligible

“All persons who purchased a Gift Card from a kiosk in the state of Washington from January 21, 2010 through April 19, 2016, and who attempted to but could not redeem their Gift Card because the e-certificate code was unreadable due to fading or darkening.”

Potential Award

Varies.

There are three types of awards in this settlement. The amount of the settlement depends on the documentation you can provide along with your eligible Claim Form.

• If you have an e-certificate code that can be located, then you will be issued the full amount provided via the original e-certificate code.
• If you have an original or copy of the Gift Card, you may earn $25
• If you do not have an original copy of the Gift card, you may earn $10

Proof of Purchase

Proof of purchase is not required for the $10 award, but an eligible Claim Form must be submitted with a sworn statement signed by you.

For the other awards, you must provide your e-certificate code for the full amount of the gift card balance or a copy of the Gift Card for a $25 award.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

07/18/2016

Case Name

Lair v. Outerwall, Inc. d/b/a Coinstar, Case No. 14-2-00040-2, in the Superior Court of the State of Washington, County of Douglas

Final Hearing

09/13/2016

UPDATE: On September 13, 2016, the court granted final approval to the Washington State Coinstar Gift Card settlement.  Keep checking back and let us know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.CoinstarGiftCardSettlement.com

Claims Administrator

Coinstar Gift Card Settlement
c/o KCC Class Action Services
P.O. Box 30204
College Station, TX 77842-3204

1-844-225-4533

Class Counsel

Clay Gatens
JEFFERS, DANIELSON, SONN & AYLWARD, P.S.

Michael Daudt
DAUDT LAW PLLC

Defense Counsel

Amanda Beane
PERKINS COIE LLP