Lowe's Home Centers will pay $546,600 to settle allegations that it failed to give California customers cash for qualifying gift-card balances below $15, the Los Angeles County District Attorney announced September 29. The practical takeaway is a cash-out right shoppers can use at the counter, not a new mass refund application.
The judgment entered in Sonoma County Superior Court requires $481,600 in civil penalties, $50,000 in investigative costs and $15,000 in restitution to the California Consumer Protection Prosecution Trust Fund. Those destinations matter: the release does not announce a consumer claim form or promise that each affected shopper will receive part of the settlement.
Lowe's must post notices in Customer Service or Returns areas, train employees and put legally compliant language on gift cards and its website. The prosecutor said the company cooperated with the investigation. The case settles allegations; it should not be described as a trial finding against the company.
California Civil Code section 1749.5 says a qualifying gift certificate with a cash value of less than $15 is redeemable in cash. Less than $15 does not include an exact $15 balance. The statute includes exceptions, including certain donated certificates bearing the required disclaimer, so the rule should not be applied without checking the card type.
Keep the card and a record of its balance when asking for cash. If a request is refused, save the store location, date and response for a consumer complaint. The settlement strengthens notice and training requirements; it does not make an otherwise ineligible card eligible or turn every gift card sold nationwide into a California cash-out claim.