Feb 27, 2008 5:28 pm US/Pacific
CA Law Forces Retailers To Give Gift Card Refunds
SAN FRANCISCO (CBS 5) ―
Most of us have them tucked away in our wallets, unused gift cards with small amounts left on them, not even enough to buy a latte. A new law would require stores to give cash back for gift cards under $10.
Since January 1st California merchants have to give you cash back for anything under $10 if you ask for it. Merchants count on you not using it. Last year $8 billion went unused on gift cards, so a law was passed to give 'you' the cash back but as we found, the law isn't always followed.
Unless you know to ask for it, stores usually won't offer it but if you ask for it, they legally have to give you the cash back.
We went undercover to purchase ten gift cards to see which stores would honor our request for cash back.
We went to the Gap, Bed, Bath and Beyond, Jamba Juice, Body Shop and Best Buy and they all gave us our cash back but at times we had to speak with the manager.
Bloomingdales and Babies-R-Us told us flat out no and gave us back our gift cards.
Overall, 8 of ten retailers said yes.
Safeway and Blockbuster said yes to cash back here in the Bay Area, but in the Sacramento area where our sister station conducted its investigation, Safeway and Blockbuster said no.
In Sacramento, eight out of ten retailers said no. Only Linens and Things and Pier One gave the money back.
Here in the Bay area, Starbucks said yes but I was told to call a number and they would send a check and in Sacramento they were told no.
"If they're going to pass the law they need to enforce it no matter what it is," said Kevin Flanagan of the California Department of consumer Affairs. "If they don't get satisfaction from the clerk, take it to the manager."
Babies R Us and Bloomingdales told us they are aware of the law and will use this experience to reinforce the policy with their stores.
We have a printable gift card with the law written on it for you just click on the link.
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