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Chipotle Settles California Gift Card Case With $246,000 Payment, Four-Year Compliance Order

The case centers on California's rule requiring cash refunds when gift card balances fall below $10.

Overview

  • Ventura County Superior Court entered a stipulated judgment following a complaint brought on behalf of Los Angeles, Sonoma, and Shasta counties.
  • Chipotle will pay $145,467.04 in civil penalties, $88,532.96 in investigative costs, and $12,000 in restitution to the California Consumer Protection Prosecution Trust Fund.
  • The order requires a dedicated refund website for California consumers, initially at chipotle.com/gift-card-cashback, to request cash for sub-$10 gift card balances.
  • New gift cards, including those sold through third parties, must carry an updated notice stating the cash-out right and the refund website address.
  • The judgment imposes a four-year injunctive period and bans use of redemption data for marketing without consent, while Chipotle denies wrongdoing.