Lowe's Home Centers will pay $546,600 for not giving California shoppers cash back on gift cards with small remaining balances.
Ventura County District Attorney Erik Nasarenko announced the stipulated judgment on Tuesday, Sept. 15. The settlement, entered in Sonoma County Superior Court, covers civil penalties, costs, fees and restitution.
Lowe's operates a store in Thousand Oaks that serves shoppers across Westlake Village, Newbury Park and surrounding communities.
What Lowe's did wrong
An investigation by the district attorneys' offices of Ventura, Sonoma and Los Angeles counties found that Lowe's did not redeem qualifying gift cards for cash when customers asked. California Civil Code Section 1749.5 requires retailers to pay out any gift card balance under $15 in cash upon request.
The $15 threshold took effect April 1 under Senate Bill 22, which raised the previous limit of $10. That earlier limit had been in place since 2008.
Lowe's cooperated throughout the investigation. The DA's announcement does not state whether Lowe's admitted or denied wrongdoing.
What changes for shoppers
Under the settlement terms, Lowe's must add information about consumers' gift card rights to physical gift cards and its website. The retailer must also post notices in customer service and returns areas informing shoppers of their rights. Employees must be trained on California's gift card redemption requirements.
Senior Deputy District Attorney Andrew Reid of the Ventura County DA's Office prosecuted the case.
"Consumers are entitled to request any balance below $15 on a gift card which they lawfully possess," Reid said in the DA's announcement.
A pattern of enforcement
The Lowe's judgment is more than double the $246,000 Chipotle Mexican Grill paid in October 2025 to settle similar gift card allegations. That case, also led by the Ventura County DA's Office, was entered in Ventura County Superior Court.
Any California shopper holding a gift card with a balance under $15 can ask the retailer to pay the remaining value in cash. The law defines "cash" as currency, check or electronic funds transfer if both parties agree.
