Chipotle can expire points (180 days) because earned rewards points aren’t legally treated like gift cards
Don’t hoard points — “earn-and-burn” programs are designed to make unused rewards disappear
Protect yourself: check the programs expiration rules and use the minimum number of points on a small purchase to protect your points total
A federal court ruled that Chipotle Rewards points are not “gift cards” or “gift certificates” under California or New York law, which means Chipotle can legally keep its 180-day expiration policy for points earned through purchases.
The lawsuit tried to challenge that policy by arguing expiring points violate state laws that typically ban expiring gift certificates. The court rejected the claim for a simple reason: earned points aren’t the same thing as prepaid money.
Why this ruling matters to consumers
Gift cards usually get stronger legal protections because they’re basically stored cash that you’ve already paid for. But when it comes to loyalty points, it’s often more of a gray area.
If points are earned through spending, and don’t represent a pre-funded cash balance, companies may be allowed to put expiration dates on them. And it’s my guess that more stores and restaurants will do just that as it encourages consumers to come back to their locations and buy stuff.
Why the court sided with Chipotle
The court’s reasoning boiled down to how Chipotle’s points work in real life:
- They aren’t purchased or pre-funded. Meaning you don’t buy points the way you buy a gift card.
- Points aren’t issued in a set dollar amount. Your points balance isn’t a “$5 value,” but rather “500 points” that you can use for free guac.
- They don’t function like money. You can’t use points across transactions like stored credit. You redeem them for specific rewards and free add-ons.
What this means for you
If you tend to treat reward points like money you can sit on and hoard until they build up, you’re going to get burned and end up losing your points.
Points programs from places like Chipotle and Starbucks are built to be “earn-and-burn,” not “earn-and-hoard.” The longer you wait, the more likely you’ll forget to use them and you’ll run out of time.
What consumers should do now
Here’s how to protect yourself so you don’t lose rewards you already earned:
- Check your balance today and find the expiration rule. Check your account and look for something like “points expire after X days of inactivity.”
- Set a 120-day reminder. That gives you a buffer before a 180-day cutoff hits.
- Track your last activity date, not just your balance. I’ve noticed that many programs reset the timer only when you earn or redeem some points, not when you simply open the app.
- Redeem smaller rewards sooner. Waiting for the “perfect big reward” is how points die unused.
- Screenshot your balance and activity history. If points disappear early for some reason, you can use that screenshot as your leverage when dealing with customer service.
- Watch out for dollar-based credits. If you ever notice that a reward is labeled something like “$10 credit,” it may be treated differently than points. Meaning if it expires, you have a better case when dealing with customer service to try and get it back.
- If points disappear unexpectedly, escalate. Ask for a supervisor, reference your screenshot, and request a one-time reinstatement. Companies often have discretionary “make it right” power even when the policy says otherwise.
Pro tip: Make one occasional “maintenance purchase.” Keep your account alive by using some points on small add-on, a kids’ meal, or even redeeming the minimum number of points for a cheap reward. One $3–$5 transaction every few months can preserve a much larger points balance.