Home Depot must pay $750,000 for violating gift card laws after the Sonoma County District Attorney’s Office and three other counties launched investigations

Home Depot must pay $750,000 in damages and make changes to its checkouts and employee training after an investigation by four California counties found the company was not complying with state gift card law.

Sonoma County District Attorney Carla Rodriguez announced Friday that Home Depot had reached a settlement after her office, along with colleagues in Contra Costa, Ventura and Los Angeles counties, filed civil lawsuits against the company.

In California, shoppers don’t have to search for change when a gift card runs low, or leave a few dollars on the card to avoid this hassle. By law, stores must redeem gift cards with a value of less than $10 for cash. However, an investigation by the four district attorneys’ offices found that Home Depot failed to meet these demands when made at multiple stores.

State law also prohibits gift cards from having an expiration date.

In addition to the fine, Home Depot must ensure compliance with the law in its stores going forward. The company must reprogram cash registers, train employees and post signs indicating the ability to redeem dwindling gift card balances.

“Our office seeks to ensure that businesses comply with laws enacted to protect consumers,” Rodriguez said in the statement. “It is important that consumers understand that they have the right to redeem any balance on gift cards under ten dollars ($10) for cash.”

The $750,000 will not be used to compensate consumers for unpaid gift cards, but will instead cover prosecutors’ investigative costs and serve as a civil penalty for the counties, according to business newspaper PaymentsJournal.

Reach staff writer Andrew Graham at 707-526-8667 or [email protected]. Follow him on X (Twitter) @AndrewGraham88