The Houston Police Officers' Union's lawsuit against the grocery chain Kroger over gift cards drained by thieves is persisting. The legal dispute centers on a claim that Kroger did not take adequate measures to secure the cards against a scam that had been known to target customers, as reported by the Houston Chronicle. Union President Doug Griffith purchased four $100 Visa gift cards, which, when the recipients attempted to use them, were found to hold just $2 each, a discovery that prompted the lawsuit.
According to a statement obtained by KHOU, the initial reaction from Kroger suggested Griffith contact his credit card company, an indication of the murky path victims face when confronting gift card theft. The case has lingered for over a year and a half, with Kroger most recently renewing its request for dismissal in June, despite allegations that the company was aware of such scams and their consequences for consumers.
Representatives for the union argue that Kroger's failure to safeguard the cards has led to a breach of trust and financial loss, even though they acknowledge the amount was relatively minor. Jarrett Ellzey, an attorney for the union, stated that "Our position is Kroger knew, or should have known, about the issue — and should have done more to secure the cards," as noted by the Houston Chronicle. The lawsuit is now seeking class-action certification to include others who may have been similarly affected.
The company, however, maintains that the gift cards were functional at the time of the sale and thus met the contractual obligations. Kroger's defense, as per lawyers in a motion to dismiss, is that “the facts alleged conclusively establish the cards were in fact purchased for their ordinary use — to be used as a gift card," as mentioned by the Houston Chronicle. The company further argued that the union’s theories about how the cards were drained weren’t sufficient to sustain a lawsuit. The decision on whether to certify the case as a class action, a move that would open the door to other alleged victims, lies with U.S. District Judge Charles Eskridge, who has not ruled on the matter following a recent hearing. For consumers wishing to avoid such scams, AARP advises looking for signs of tampering on cards and purchasing electronic gift cards directly from the store's website or cards that are kept behind a store counter.
