Dollar Tree Class Action Says Retailer Won’t Redeem Gift Cards for Cash

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Dollar Tree Stores Inc. was hit with a class action lawsuit accusing the retailer of illegally refusing to redeem gift cards for cash upon a customer’s request.

“In recent years, gift cards have become increasingly popular, with billions sold annually,” the Dollar Tree class action lawsuit states. “However, consumers often do not or are not able to redeem the full value of their gift cards.”

“Accordingly, amounts representing the unredeemed portion of gift cards are customarily swept into retailers’ coffers as revenue, with nothing provided in return,” the lawsuit says.

According to the class action lawsuit, the California legislature addressed this issue by passing a law requiring retailers to redeem gift cards with a balance of less than $10 for the card’s cash value upon a customer’s request. The law reportedly took effect on Jan. 1, 2008.

Despite passage of this law, plaintiff Edward Kidd of California asserts Dollar Tree refuses to provide cash when a customer attempts to redeem a gift card with a remaining balance of less than $10.

Kidd says he received a Dollar Tree gift card and used it to make two purchases at two different Dollar Tree stores in California. Following each of the transactions, the gift card had a balance of less than $10. He says he requested the cashiers at both stores to redeem the gift card balance for cash, but both cashiers refused.

According to the California gift card class action lawsuit, the plaintiff’s private investigators visited six more Dollar Tree stores in California.

During each visit, they used a Dollar Tree gift card to make a purchase, bringing the cash value of the gift card below $10. When the investigators asked for cash back for the remaining gift card balance, they were reportedly informed that they could not receive the balance in cash.

Kidd filed the Dollar Tree class action lawsuit on behalf of himself and other holders of gift cards issued by Dollar Tree in the state of California during the past four years.

He asserts Dollar Tree violated California law by failing to allow consumers to redeem Dollar Tree gift cards with a remaining balance of less than $10 for cash.

Kidd seeks an injunction prohibiting Dollar Tree from refusing cash redemption on gift cards with a balance of less than $10. He also seeks restitution, disgorgement, costs of suit, prejudgment interest, attorneys’ fees and other relief deemed appropriate by the court.

Dollar Tree owns more than 600 stores in California, and more than 13,800 stores in the United States and Canada, according to the Dollar Tree class action lawsuit. The discount retail chain reportedly had revenues in excess of $15.5 billion dollars for the fiscal year ending Jan. 31, 2016.

Kidd is represented by Gary D. Garcia of Law Office of Gary D. Garcia and Melvin B. Pearlston and Robert B. Hancock of Pacific Justice Center.

The Dollar Tree Gift Card Class Action Lawsuit is Edward Kidd v. Dollar Tree Stores Inc., Case No. 37-2016-00029964-CU-BT-CTL, in the Superior Court of the State of California for the County of San Diego – Central Division.