Shell Settles With 7 Bay Area Counties Over Misleading Gift Card Advertising

MARTINEZ (KCBS) -- Shell Oil has agreed to pay more than $762,000 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 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 did not admit any liability, but says it has implemented changes.