Google and RadioShack Face Challenges from Gift Card Holders
Both Google and RadioShack are engaged in legal battles with consumers holding unused balances on the respective company’s gift cards. Although the nature and underlying causes of the suits differ, they are an important reminder to gift card providers of the potential risks posed to their programs from plaintiff’s attorneys.
In the case of Google, a putative class of Google Play gift card holders filed suit in federal district court in California, alleging that Google failed to redeem gift card balances less than $10, as required by California law. The gift card holders claim that when they attempted to redeem their low balance gift cards, they were instructed to either pay for a product’s entire cost or buy additional gift cards in an amount sufficient to purchase the item.
In the case of Google, a putative class of Google Play gift card holders in California filed suit in Federal district court in California, alleging that Google failed to redeem gift card balances under $10 as required by California law. The gift card holders claim that when they attempted to redeem their low balance gift cards, they were instructed to either pay for a product’s entire cost or buy additional gift cards in an amount sufficient to purchase the item.
RadioShack, on the other hand, faces a claim against its bankruptcy estate in Delaware court from another putative class of consumers who hold gift cards with unused balances. These gift card holders allege they didn’t receive proper notice of the bar date to file claims and leaving the putative class members to pursue claims on their own would effectively cause them to lose before a claim is filed. They are, according to the complaint, unlikely to have the knowledge to navigate complex bankruptcy laws to pursue their claims. The putative class members argue that their claims should be paid out as a high priority.
