Google Hit With Class Action Over Non-Refundable Google Play Gift Cards

Google Inc. was hit with a class action lawsuit, alleging that the internet giant won’t redeem gift cards for Google Play that have balances less than $10, which is illegal under California law.

Plaintiff Lorena Hernandez, along with her daughter Malynda Hernandez, says in the Google Play gift card class action lawsuit filed in a California federal court Thursday that California law specifically requires that customers may opt to receive a cash payout for a gift certificate or gift card that has a cash value less than $10.00.

Lorena purchased a Google Play Gift Card for her daughter Malynda, 19, for $25 in March as a present. Malynda used the gift card the day after she received it and the $25 was loaded into her Google Wallet.

With the $25, Malynda purchased one movie for $9.99 and then rented two movies, one that cost $4.99 and one that was $2.99. She then had a balance of $7.03 on her Google Wallet account.

When Lorena called Google, using the phone number listed on the Google Play Gift Card Terms & Conditions to try to get a cash refund for the balance, she was told that a refund could not be paid out because of the Google Gift Card Terms of Service.

In addition, the Google representative said that the “balance could not be combined with any other payment methods.”

This meant that in order to use the balance left over, either “Lorena or Malynda would have to purchase an additional Google Play Gift Card, effectively preventing Malynda from accessing the full value of the Gift Card.”

As a result, Lorena decided to buy another gift card for Malynda, so that she wouldn’t have to forfeit the balance, “thus spending more money than she otherwise would have spent if defendants had simply refunded the $7.03 balance remaining on the gift card.”

Malynda had wanted to buy a movie that cost $14.99, but because Google wouldn’t allow her to use the $7.03 left over and wouldn’t let her pay for the remainder with a credit or debit card, Lorena had to buy a $10 Google Play gift card. Malynda purchased the $14.99 movie, but then had $2.04 left in her Google Wallet.

Malynda then purchased two apps for $0.99 each so that the money wouldn’t go to waste. Malynda now has $0.06 left in her Google Wallet, but there is nothing that Google sells for $0.06.

“Based on the Terms & Conditions, if the plaintiffs wanted to use the balance on the Google Play Gift Card, they would be forced to purchase an additional Google Play Gift Card or Google Play credits, and the merry-go-round would continue to plaintiffs’ detriment, much to Google’s financial — albeit unfair — advantage and benefit,” Lorena and Malynda write in their Google Play Gift Card class action lawsuit.

The Google Play class action lawsuit cited California Civil Code, which states that “any gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash for its cash value.”

Google Play customers are only given the option of purchasing a Google Play Gift Card, in which the lowest amount such gift cards come in is $10, or buy credits in $5 increments to add to their balance.

“Plaintiff Lorena Hernandez, like many unsuspecting consumers nationwide, fell victim to Google’s deceptive and unlawful conduct and purchased a Google Play Gift Card without knowing that, as a practicable matter, the full amount on the face of said gift card cannot be used,” the Google Play class action lawsuit claims.

Lorena and Malynda are looking to represent a nationwide class that consists of two classes: those who purchased the Google Play gift cards and those who used the gift cards.

The plaintiffs are represented by Stephen R. Basser, Jeffrey W. Golan and Samuel M. Ward of Barrack Rodos & Bacine, and Brian Felgoise of Felgoise Law Firm.

Counsel information for Google is not yet available.

The Google Play Gift Card Class Action Lawsuit is Lorena Hernandez et al. v Google Inc. et al., Case No. 5:15-cv-03303, in the U.S. District for the Northern District of California.