Legal Question in Civil Litigation in California

I tried to respond to the answer that was given, but was unable so here is my original question:

I am wondering if Civil Code 1749 applies to HalfOffDeals.com gift certificates. They say on their site that no cash will be given back that they are one use. I know that 1749 prohibits this; however, the fullfillment company is in Ohio. I am in California, the restaurant is in California; so, does the fact that the fullfillment company is in Ohio change any of the protection under 1749?

Response:

I quickly looked at Section 1749 and do not see how it applies in the manner you think it does. That the fulfillment company is in Ohio does not matter since they are doing business in California. How does the section prohibit a provision in the contract stating that you can only use the coupon once and not get any cash back? You are getting what you paid for and nothing is being hidden.

George Shers

My response:

Section 1749.5 says:

(b) (1) Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder.

(2) Notwithstanding paragraph (1), any gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash for its cash value.

By stating that it has no cash value, they seem to be in violation of this section of the code. as to your, I am getting what I paid for, I am not. I bought a $20 gift certificate, but in order to get $20, I have to buy more food than I can eat in one sitting. This means that I would have to forfeit some of what I paid for.


Asked on 3/22/11, 4:55 pm

3 Answers from Attorneys

What you bought was not legallly a $20 gift certificate, it was a conditional $20 discount coupon. It is no different than if they sent you a $20 off a $100 purchase coupon for free. A gift certificate is, by definition, a dollar-for-dollar instrument that does not involve any discount at all. You pay $20 to get $20. That is why it is cash redeemable. Once you are buying discounts, you are not in the realm of gift certificates, but rather the realm of discount coupons. That is why 1749.5 does not apply.

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Answered on 3/22/11, 7:54 pm
George Shers Law Offices of Georges H. Shers

see http://www.pillsburylaw.com/index.cfm?pageid=34&itemid=39536==merchant can give you a new card for balance if greater than $10 left.

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Answered on 3/22/11, 11:47 pm
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. McCormick. I looked at that site, and that is not a "gift card." A gift card is something purchased by a consumer, that is paid for, and is then usually given to someone else for use at that merchant.

The site you referred us to contains merchant deals, that provide discounts in exchange for advertising. Nothing on that site includes a gift card.

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Answered on 3/23/11, 8:30 am


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