Press Release
FOR IMMEDIATE RELEASE
Date: 08/19/2009

Contact person(s):

Media Coordinator, Terry Menshek - (707) 565-3099 Media Spokesperson, Deputy District Attorney Tashawn Sanders

Santa Rosa, Sonoma County, California

STARBUCKS PAYS $225,000 TO SETTLE CONSUMER PROTECTION
CASE FOR GIFT CARD VIOLATIONS

Sonoma County District Attorney Stephan Passalacqua announced today that his office and the District Attorneys of Monterey and Shasta counties reached a settlement in a civil law enforcement action filed against Starbucks Corporation. The complaint alleged that Starbucks failed to honor customer requests to redeem store gift cards with balances of less than $10 for cash as required by a California law enacted January 1, 2008. Under the terms of the settlement, Starbucks agreed to pay $225,000 in civil penalties, costs, and restitution, and to injunctive provisions to ensure future compliance.

District Attorney Passalacqua said, "California consumers are entitled to the full protections provided by California law. This action ensures that when it comes to gift card cash refunds, consumers will get what they deserve.”

The judgment requires Starbucks to: (1) outfit all of its point of sale devices with a specific button to allow employees the in-store capability to redeem gift cards, (2) conduct employee training regarding gift card redemption procedures, and (3) post in-store signage notifying customers of their right to redeem gift cards with balances of less than $10 for cash.

Starbucks cooperated with prosecutors during the investigation. While it was clear that Starbucks made some efforts to comply with the January 2008 change in the law, once alerted to the investigation, Starbucks voluntarily implemented additional procedures to address the problem prior to the filing of the complaint and judgment.

The judgment was filed in Shasta County Superior Court on August 13, 2009. In Sonoma County, the case was investigated by the District Attorney’s Environmental and Consumer Law Division, in conjunction with the Sonoma County Agricultural Commissioner/Sealer, Division of Weights and Measures, and the California Department of Food and Agriculture, Division of Measurement Standards. Deputy District Attorney Matt Cheever handled the matter for this office. Sonoma County consumers may call the District Attorney’s Environmental and Consumer Law Division at 707-565-3161 if they have a complaint or question about a consumer related issue.