July 16, 2019

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CA Bill Introduced To Require Non-Retail Businesses To Allow Customers To Choose Among Refunds Methods

A bill (AB 1428) has been introduced in the California Assembly that would apply to a “business” that uses prepaid cards to make refunds to customers located in California.  The bill would require such a business to allow the customer to choose whether to get the refund by prepaid card, check, or a refund back to the original form of payment.

For purposes of this requirement, a “business” is defined as “a proprietorship, partnership, corporation, or other form of commercial enterprise” but does not include “a retail establishment or restaurant.”  The term “customer” is not defined.  As a result, the bill could be read to apply to refunds to business entities.

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Scott Pearson, Ballard Spahr Law Firm, Los Angeles, Business Litigation Attorney
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Scott Pearson focuses his practice on the defense of regulatory enforcement actions and class actions, other complex business litigation, and regulatory compliance counseling. Martindale-Hubbell rates Mr. Pearson "at the highest level of professional excellence." He has been called "a true expert in complex litigation and consumer class actions" and "a no-nonsense bulldog lawyer who is highly respected by his peers and the judiciary."

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