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A new class action lawsuit filed against national office supply chain Staples alleges the company failed to follow state laws on cash redemptions of its gift cards.
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California law requires that retailers upon request offer cash redemptions on gift cards with less than $15 of remaining balance. The threshold was raised from a limit of $10 in April of this year with the passing of California Senate Bill 22, making it the highest reimbursement in the nation.
Kristina Wuest of Folsom — the lead plaintiff in the case — attempted to cash out a Staples gift card with a balance of approximately $7.55 at one of the retailer’s California locations, according to the lawsuit. The store told her that it would not redeem the gift card unless she could identify the last transaction made on it. She was unable to do so and her request was denied.
Wuest later purchased a new gift card for $35 and visited a different California Staples location to buy a charger, which left approximately $5 on the card. She again tried to redeem the remaining balance for cash, but was told the store could not do so unless she produced the original receipt showing purchase of the card. She could not find the receipt immediately and left without being able to redeem the remaining cash value.
The lawsuit was filed in Sacramento Superior Court on Aug. 25 by Calabasas-based attorney Todd Friedman. The complaint seeks restitution of all money or property being retained by Staples as a result of the company’s alleged failure to redeem gift cards for cash in addition to attorney fees.
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Similar lawsuits have been filed against corporations for failures to follow rules regarding gift card redemption. In October 2025, Chipotle Mexican Grill settled allegations of noncompliance with California law by paying $246,000 in civil penalties, restitution and other costs. The chain also had to commit to creating a website to make gift card cash-out requests easier for customers.
Staples has over 800 locations in the United States, including 114 in California.
Neither Staples nor Friedman responded to requests for comment in time for publication.
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