Shell Oil Co. has agreed to pay $762,500 in civil penalties to settle allegations brought by seven Bay Area counties of misleading advertising for gift cards.
Alameda County District Attorney Nancy O'Malley -- along with her counterparts in Napa, Santa Clara, Santa Cruz, Solano and Sonoma counties -- announced the stipulated judgment on Monday, which also requires Shell to pay restitution and make changes to how its gift cards and fuel rewards cards work.
The counties alleged that Shell didn't disclose that certain advertised discounts for gift cards and fuel reward cards couldn't be combined, that other discounts were not being honored by all its stations and that the company failed to redeem gift cards with balances under $10 for cash as required by state law.
Shell has worked to implement changes but didn't admit any liability in the case, according to O'Malley's office. The company is making changes to technology, more adequately disclose any limitations on discounts, and providing new training materials for Shell stations.
"My office is committed to ensuring that California's consumer protection and false advertising laws are followed," O'Malley said in a statement. "It is vital that we work to protect consumers and create a level playing field for all businesses."
