Dunkin’ settles gift card balance lawsuit

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Update:

• Plaintiffs Daniel Crooks and Matthew Miller agreed to settle a class action lawsuit against Dunkin’ Brands over the company’s refusal to refund gift card balances less than $5 in cash.
• Details of the settlement in federal court in Massachusetts were not released.
• The plaintiffs filed for a voluntary dismissal of the lawsuit with each party paying its own legal fees.
• Plaintiffs claimed Dunkin’ was legally required to refund the gift card balances in cash in at least 10 states, including New Jersey, Massachusetts, California, Colorado, Maine, Montana, Oregon, Rhode Island, Vermont and Washington.

Dunkin’ non-refundable gift cards class action overview:

• Who: A New Jersey coffee drinker is suing Dunkin’.
• Why: The plaintiff says Dunkin’ is required to give him a cash refund on gift cards with small remaining values.
• Where: The class action lawsuit was filed in Massachusetts federal court.

(May 17, 2022)

A New Jersey Dunkin’ customer says the coffee chain should allow cash refunds on its gift cards with less than $5 balance on them but doesn’t, according to a new class action lawsuit. 

Plaintiff Daniel Crooks filed the class action lawsuit against Dunkin’ Brands Group Inc. May 12 in a Massachusetts federal court, alleging violations of state consumer laws. 

Crooks alleges that Dunkin’ is required by law to provide a cash refund up to a certain amount on gift cards in at least 10 states, including New Jersey and Massachusetts. 

In those states, retailers are required to refund anything less than $5 in cash on request. However Dunkin’ does not allow for any cash refund on gift cards, the class action states.

“These small balances add up,” the lawsuit states. “Defendants have distributed millions of these cards to gift card purchasers and holders throughout the United States. Thus, defendants have acquired at least millions of dollars in revenue to which they are not entitled.”

Dunkin’ gift card balances act as ‘hidden fees,’ class action claims

The gift cards themselves say they may not be redeemed for cash, check or credit unless required by law. 

“Defendants do not reveal that despite this affirmation, defendants’ policy is that the gift cards are completely non-refundable and in fact have no mechanism to refund the value of the gift cards even in situations where state law requires it,” the class action states. “These remaining balances are thus unavailable to gift card users and function as a hidden fee that is not disclosed to users.”

California, Colorado, Maine, Montana, Oregon, Rhode Island, Vermont and Washington all have similar laws regarding gift cards as those New Jersey and Massachusetts, the lawsuit alleges.

The plaintiff is looking to represent anyone in the United States who has a Dunkin’ gift card. He is seeking certification of the class action, fees, costs, damages and a jury trial.

In 2018, Dunkin Donuts was hit with a lawsuit for allegedly using a no-poach clause among its franchisees.

Have you tried to get your Dunkin’ gift card balance in cash? Let us know in the comments below.

Crooks is represented by James J. Reardon Jr. of Reardon Scanlon LLP and Philip L. Fraietta and Julian C. Diamond of Bursor & Fisher PA.

The Dunkin’ Gift Cards Class Action Lawsuit is Crooks v. Dunkin’ Brands Group Inc., et al., Case No. 1:22-cv-10738, in U.S. District Court for the District of Massachusetts. 

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