Home Depot to settle fine for violating California consumer protection law

Home Depot has agreed to settle a suit levied against the home improvement retail chain for violations of consumer protection laws.

Home Depot will pay $750,000 to settle the lawsuit, which alleged that the DIY empire did not follow existing laws about gift card redemption.

Under California law, retailers must provide an option for gift card holders to redeem the value of their card if it’s below $10.

The law, according to Los Angeles County District Attorney George Gascón, is meant to protect consumers from losing out on money that has already been paid to businesses.

“[It] exists to safeguard the rights of hardworking individuals who may find themselves in need of the money they paid, especially during challenging times,” Gascón said in a Wednesday press release. “It is unacceptable for any entity to disregard such crucial legal protections, and our office takes allegations of consumer rights violations very seriously.”

As part of the settlement, Home Depot admits no wrongdoing and officials said the company was cooperative throughout the process and has taken the appropriate steps to correct the issues.

The $750,000 payment will be used to cover civil penalties and investigative costs, and Home Depot has been ordered by the Los Angeles County Superior Court to change the way it handles gift card transactions.

Among the terms of the settlement, Home Depot will be required to program its check stands and registers that disburse cash to automatically pay out gift cards in cash if they have a balance of less than $10. Additionally, notices about the law will need to be included on physical gift cards, websites where they can be purchased or redeemed, and at the customer service and returns sections of its California stores.

California employees will also be given additional training regarding gift card redemption.

The case was investigated locally by the DA’s Office Consumer Protection Division and the Los Angeles County Department of Consumer and Business Affairs. District attorney’s offices across the state also conducted their own investigations.

For more information about California’s consumer protection laws regarding gift cards, click here.

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