The Gift Card
Civ. Code 1749.5 — no expiration date, no service fee, and cash for a balance under $15
In California, it is unlawful to sell a gift certificate that contains an expiration date or a service fee, including a dormancy fee, except as the section allows. A gift certificate sold without an expiration date is valid until redeemed or replaced.
Cash for less than $15. A gift certificate with a cash value of less than fifteen dollars ($15) is redeemable in cash for its cash value. Any gift certificate sold after January 1, 1997, is redeemable in cash or replaceable with a new one at no cost.
- Free certificates from an awards, loyalty or promotional program, those sold at a discount to employers or charities, and those for perishable food may carry an expiration date in capital letters in at least 10 point font on the front.
- A dormancy fee is allowed only where the remaining value is five dollars ($5) or less, the fee is no more than one dollar ($1) a month, and the card has had no activity for 24 consecutive months, among other conditions.
The full conditions for the dormancy fee exception are in the section and are not reproduced here. Whether a card is covered is a question for a licensed California attorney.
Sources for this section (1)
- Civ. Code 1749.5 — Gift certificates; expiration dates and service fees
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed California attorney.