Attorney General Patrick C. Lynch has announced the filing Thursday of a Civil Investigative Demand in Providence County Superior Court against the former owners of North Kingstown tavern, who are accused of selling gift certificates while simultaneously planning to close their restaurant.
The demand alleges that D. Anthony Monte, the former owner of the Red Rooster Tavern, sold thousands of dollars worth of gift certificates while in the process of renovating the restaurant.
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The restaurant closed its door without honoring the gift certificates or refunding many of the consumers’ money. In the filing, Lynch said that his office is pursuing refunds for all consumers who paid for gift certificates but who have yet to receive their refunds.
Lynch said the investigation was launched upon numerous complaints lodged with his office’s Consumer Protection Unit. To date, he said, more than 50 consumers who purchased gift certificates have contacted the unit.
“Gift certificates are a popular commodity, but only if the bearers receive the product or service to which they are entitled,” Lynch said in a news release. “It’s critical that restaurants, and all businesses, understand their obligations under the law when they sell gift certificates.
“It’s not the restaurant’s money until its services or goods have been provided to the customer. The Red Rooster’s former patrons shouldn’t be left to bear the financial burden of the restaurant’s closing. It’s not their burden. It’s the owner’s.”
