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Sally Beauty gift card holders in California whom employees told that their card with a balance less than $10 could not be redeemed for cash may qualify to claim a $10 e-gift card from a class action settlement.
Sally Beauty LLC agreed to pay $65,000 to settle a class action lawsuit alleging it failed to comply with California law requiring cash redemption of low-balance gift cards. The settlement provides both monetary relief for eligible class members and injunctive relief to ensure future compliance with California law.
Who is eligible to file a claim?
Class members must meet all of the following criteria:
- They possessed a Sally Beauty gift card with a balance of less than $10.
- They attempted to redeem the card for cash at a Sally Beauty location in California.
- A Sally Beauty employee informed them that cash redemption was not permissible.
- They disposed of the gift card.
The settlement is capped at 4,828 valid claims; once this limit is reached or the claims period ends, the settlement administrator will not accept further claims.
How much is the Sally Beauty payout?
Each eligible class member can receive a $10 Sally Beauty e-gift card. This e-gift card can be used at any Sally Beauty location in California and does not require an additional purchase.
How to claim an e-gift card
Class members can file a claim online. There is no PDF claim form available for download.
Payout options
Eligible class members will receive a $10 Sally Beauty e-gift card that can be used at any Sally Beauty location in California.
Settlement fund breakdown
The settlement fund covers:
- Attorneys’ fees and costs and certain administration costs: $65,000
- Incentive award to class representative: $1,500
- Payments to class members: Up to 4,828 $10 e-gift cards
When is the Sally Beauty gift card settlement payout date?
The settlement administrator will distribute e-gift cards after the claims period ends or when it receives 4,828 valid claims. The exact payout date is not specified but will occur after the settlement receives final approval and all claims are processed.
Why did this class action settlement happen?
The class action lawsuit alleged Sally Beauty Supply failed to comply with California Civil Code Section 1749.5, which requires retailers to redeem gift cards for cash upon customer request when the balance is below $10.
As part of the settlement, Sally Beauty also agreed to:
- Review and update its policies and practices to ensure compliance with California law
- Hold at least one training session for all guest-facing managers and employees in California locations regarding gift card redemption policies
- Instruct new employees about the legal requirement to redeem low-balance gift cards for cash
- Ensure point-of-sale terminals in California allow for in-store redemption of gift cards with balances under $10
- Post a notice in employee-only areas of California stores for 12 months stating that gift cards with balances under $10 must be redeemed for cash upon request
- Publish a similar notice on its website for 12 months
- Conduct internal audits of compliance twice over a two-year period
- Provide a declaration to plaintiff’s counsel confirming compliance with these obligations
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