Tremendous gift cards class action overview:
- Who: Tremendous is facing a class action lawsuit claiming that the company misrepresents the value of its gift cards.
- Why: Tremendous claims its gift cards are a cash equivalent, but they can’t be used at most brick-and-mortar stores and are set up so that small balances can’t be used. The balances are then forfeited to Tremendous through dormancy fees.
- Where: The Tremendous class action was filed in federal court in New Jersey.
Tremendous is facing a class action lawsuit claiming the company misrepresents its gift cards as being equivalent to cash, when there are actually multiple reasons they cannot be used as cash.
The digital Tremendous gift cards are offered under a category of cash payments as a virtual card, but the cards cannot be used at most brick-and-mortar stores, and small balances on the card are retained by Tremendous, the lawsuit says.
The cards are often used as an option for payment in class action lawsuits alongside Paypal, Venmo, Zelle, direct deposit or a paper check.
“Reasonable cardholders would expect to be able to spend the full value stated on the card, either online or at brick and mortar stores,” the Tremendous class action says. “Contrary to the representation, the cardholders belatedly realize that they are unable to take advantage of the full value stated on the Card and that brick and mortar stores generally do not accept the card.”
Cards usually must be used online; shipping and handling reduces value
If the cards are used for online purchases, the added cost of shipping and handling makes the cards less valuable than cash, the lawsuit claims.
If unused, consumers then have to forfeit the value on the cards through dormancy fees, the lawsuit says.
“For cardholders venturing to brick and mortar stores, the card is valueless since the card is hardly accepted at most brick-and-mortar stores,” the Tremendous class action says.
Apple agreed to a now-closed $1.8 million class action lawsuit settlement to resolve claims that it misrepresented the security and value of its gift cards that were later redeemed by unauthorized third parties.
Have you received Tremendous gift cards as part of a settlement? Let us know in the comments.
The plaintiff is represented by Tiffany Troy of Troy Law PLLC, Spencer Sheehan of Sheehan and Associates PC and James Chung of Chung Law Firm PC..
The Tremendous class action lawsuit is Liou v. Tremendous LLC, Case No. 3:24-cv-00437, in the U.S. District Court for the District of New Jersey.
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