Class Action Claims Chipotle Shortchanged Cash-Paying Customers Amid COVID-19 Pandemic [UPDATE]

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Chipotle Mexican Grill, Inc. has been hit with a proposed class action that claims the company has shortchanged customers who pay with cash at its Pennsylvania locations.

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According to the case out of Allegheny County Court, the chain of fast casual restaurants, which has at least 96 locations in Pennsylvania, has instituted a company policy whereby employees are directed to round down customers’ change to the nearest dollar and pocket the difference for Chipotle’s benefit.

One of the plaintiffs, for example, says she purchased food in August at a Chipotle restaurant in Allison Park, Pennsylvania for a total price of $15.51. Though she handed the cashier a $20.00 bill, she was given only $4.00 in change instead of the $4.49 she was due, the lawsuit says.

“Thus, rather than giving the consumer his or her proper change, or a credit on future purchases, or the benefit of a corporate policy by rounding the purchase price down,” the complaint says, “the purchase price would effectively be rounded up by the cashier (despite what is reflected on the consumer’s receipt) so that Chipotle, and not the consumer, benefits.”

In other words, the suit explains, the plaintiff’s $15.51 purchase effectively cost her $16.00, or $0.49 more than the advertised price, simply because she chose to pay using cash. The second plaintiff claims she had a similar experience at a Wexford, Pennsylvania Chipotle, where she was allegedly given only $11.00 in change instead of the $11.28 that was due.

The case further alleges the receipts provided to the plaintiffs deceptively indicated that they had, in fact, received the proper change, “thus covering up evidence of Chipotle’s improper actions.”

According to the case, Chipotle’s change policy discriminates against customers who do not have, or do not wish to use, credit cards, and allows the restaurant chain to receive a tax-free cash windfall. The lawsuit estimates the policy has benefited Chipotle to the tune of hundreds of thousands, if not millions, of dollars, to the detriment of Pennsylvania consumers.

“As a result,” the case says, “Chipotle made a conscious decision to give to itself by enhancing its own profits, rather than giving back to the community.”

The lawsuit seeks an injunction for Chipotle to end its alleged “outrageous and improper” company policy of selling food at a higher price to those who pay with cash and require the company to provide credits to cash-paying customers for future purchases if it fails to provide exact change.

Though the complaint does not mention the national change shortage the Federal Reserve has stated is linked to the COVID-19 pandemic and resulting economic downturn, Frank G. Salpietro, an attorney for the plaintiffs, told Law360 that the crisis “doesn’t give Chipotle the license to line its own pockets at the expense of consumers.”

“[H]iding behind the change shortage to justify taking more money than Chipotle is entitled to receive disproportionately hurts the people who can least afford it—people who lack bank accounts, those who cannot afford or obtain credit cards, youths, and lower-income people,” Salpietro said. “Chipotle could have taken several paths to deal with the coin shortage. Instead they opted to increase their bottom line rather than help their customers in even little ways.”

The full complaint can be read below.

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