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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.

Copyright © by Ballard Spahr LLPNational Law Review, Volume IX, Number 57


About this Author

Scott Pearson, Ballard Spahr Law Firm, Los Angeles, Business Litigation Attorney

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."

Prominent companies regularly entrust Mr. Pearson with matters involving bet-the-company exposure or extreme...