LOS ANGELES (Legal Newsline) - A class action lawsuit centers on Chipotle's refund policy for gift cards.
Chipotle Mexican Grill, Inc. is facing a class-action lawsuit filed Feb. 20 by Kelly Barton Terry. The suit alleges that Chipotle has violated laws in connection with its refusal to refund purchases made with gift cards and instead provide meal vouchers subject to limitations that effectively render them worthless.
The case was filed in the United States District Court for the Central District of California.
According to the complaint, Chipotle operates a nationwide chain of “fast casual” restaurants serving a menu of burritos, tacos, burrito bowls, and salads. The company offers gift cards which it sells directly to customers in its restaurants and through its website, as well as through third-party vendors.
The lawsuit alleges that Chipotle recognizes substantial revenue from the sale of its gift cards and even more when these gift cards are purchased but not actually used.
The company allegedly acknowledges earning hundreds of thousands or possibly millions of dollars per year in “breakage” caused by customers who purchase gift cards that do not end up being used.
Alex Straus of Milberg Coleman represents the plaintiff.