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ARTICLE · 23 JUNE 2014

Massachusetts Statute Concerning Gift Certificates Triggers Latest Wave Of Class Action Litigation

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Plaintiff class-action lawyers are invoking the Massachusetts Gift Certificate Statute as their latest vehicle to bring putative class action claims against companies.

United StatesLitigation, Mediation & Arbitration
Michael Pastore
Michael Pastore
James Ponsetto
James Ponsetto
David Thomas
David Thomas

Plaintiff class-action lawyers are now invoking the Massachusetts Gift Certificate Statute, General Laws Chapter 200A, Section 5D, as their latest vehicle to bring putative class action claims against companies doing business in Massachusetts under the Massachusetts Consumer Protection Act (Chapter 93A). The allegations are relatively straightforward – consumers allegedly are (1) being misled about their rights, under certain circumstances, to redeem gift certificates for cash, and (2) not being allowed to redeem their gift certificates for cash when requested. These practices allegedly are unfair or deceptive under Chapter 93A.

Chapter 200A, Section 5D provides, in part:

A purchaser or holder of a gift certificate, which, by its terms, prohibits the purchaser, or holder from adding value thereto and which has been redeemed for at least 90 percent of its face value shall make an election to receive the balance in cash or continue using the gift certificate. A

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