US 2008 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources in United States

US 2008 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources

Alaska
H.B. 49
Relates to credit memos, gift certificates, and gift cards, and to unclaimed property; and makes a violation of certain gift card prohibitions an unlawful trade practice.

S.B. 115
Relates to gift certificates and gift cards, and to unclaimed property; makes it a violation of certain gift card prohibitions an unlawful trade practice.

Colorado
H.B. 1154
Postponed indefinitely 2/13/08
Makes it unlawful to sell via an internet auction A value-loaded card, unless the seller provides certain information to the auctioneer and the company’s general counsel; when a person who sells a total of five or more value-loaded cards in concurrent internet auctions conducted by an auctioneer, requires the auctioneer to notify the retailer of the sale in writing or electronically within 24 hours. Requires the auctioneer to give the retailer relevant information about the seller, including the sales history and all aliases and accounts used by the seller.

Florida
S.B. 324
Revises expiration dates for gift certificates. Clarifies the term “gift certificate” to exclude discount or promotional coupons or tickets to specified theme parks or entertainment complexes and permanent exhibitions or recreational activities within such theme parks or entertainment complexes.

Hawaii
H.B. 2591
Passed House 3/4/08
Requires retailers to pay out in cash the balance of any gift card worth less than $5, if requested by the consumer.

Illinois
H.B. 4719
Provides that the holder of a gift certificate issued on or after January 1, 2009 that has a balance of less than $10 must be given the option of receiving that balance in cash.

Iowa
H.S.B. 201
Relates to the issuance of gift cards and gift certificates, including providing for abandonment, establishing restrictions on fees and charges, prohibiting expiration dates and other restrictive terms, and making penalties applicable.

S.F. 2091
Became S.F. 2372 3/10/08
Relates to the issuance or redemption of gift certificates, establishing restrictions on fees and charges, prohibiting expiration dates; makes penalties applicable.

S.F. 2372
Relates to the issuance or redemption of gift certificates, establishing restrictions on fees and charges, prohibiting expiration dates; makes penalties applicable.

S.S.B. 1230
Relates to the issuance of gift cards and gift certificates, including providing for abandonment, establishing restrictions on fees and charges, prohibiting expiration dates and other restrictive terms, and making penalties applicable.

Kansas
H.B. 2179
Expands the Kansas Consumer Protection Act. Current law requires certain gift cards and gift certificates, issued on or after January 1, 2007, to have an expiration date of no less than five years. Allows gift certificates and gift cards that are sold or distributed by non-profit organizations to be issued for less than five years as long as the expiration date appears on the front of the certificate or card. These types of certificates and cards must be used to promote civic improvements, including economic development.

Maine
L.D. 2181
Requires a merchant redeeming a gift obligation or stored-value card to refund a balance on the card of less than $5 to the consumer as long as the card is redeemed in person by the customer.

Maryland
H.B. 613
S.B. 998
Provides that after a specified date, the balance remaining on a gift certificate shall be presumed abandoned; requires a person that issues a gift certificate sold in the State to remit to the Comptroller a specified percentage of the remaining balance on the gift card on or before a specified date each year.

H.B. 1297
Prohibits a person in the state from selling or offering to sell, by means of an Internet auction, any food, drug or cosmetic product that is subject to expiration dating requirements, any infant formula or baby food, or more than five value loaded cards in a month; establishing penalties for a violation of the Act.

Massachusetts
H.B. 326
Relates to credit backed or bank issued gift cards.

H.B. 347
Eliminates surcharges on purchases of gift certificates.

S.B. 176
Provides for returning merchandise purchased with a gift card.

S.B. 2345
Signed by governor 3/3/08, Chapter 58
Provides updates to the gift certificate law.

S.B. 2419
Allows cash redemption of certain gift certificates.

Michigan
H.B. 4050
Passed House 11/28/07
Prohibits the following: (1) Refusing to accept a gift certificate in payment for goods and services used or bought for use primarily for personal, family, or household purposes, including goods or services advertised on sale or as part of a liquidation or closeout. This does not apply if the gift certificate has a legal expiration date and is presented for redemption after that date. (2) Restricting the holder of the certificate from using it consistent with its terms and conditions. (3) Altering any term or condition after the certificate is issued. (4) Failing to disclose any terms or conditions to a prospective purchaser. The bill specifies how these terms and conditions are to be disclosed. (5) Failing to disclose any terms or conditions by conspicuously printing them either on the certificate; on the envelope or packaging (if a toll-free number is on the certificate); or in a separate printed document (if a toll-free number is on the certificate). (6) Failing, in any advertisement or promotion, to disclose through a notice that the certificate has terms or conditions. (7) Refusing to apply a certificate or the balance of a certificate to the purchase price in cases where the purchase price of goods or services exceeds the value of the certificate or balance. The bill defines “terms and conditions” so that the phrase includes, but is not limited to, and expiration date or a fee charged for the replacement of a gift certificate that is lost, stolen, or destroyed. The term “gift certificate” would not include: a general use, prepaid card or other electronic payment device issue or sponsored by a financial institution in a predetermined amount and usable at multiple, unaffiliated retailers or at automated teller machines; an electronic payment device linked to a deposit account; a prepaid telephone calling card; an electronic payment device used to access an account from which an individual can pay medical expenses, health care expenses, dependent care expenses or similar expenses on a pre-tax basis under the federal Internal Revenue Code; a prepaid discount card or program used to purchase identified goods and services at a price or percentage below the normal and customary price, if any expiration date is clearly and conspicuously disclosed; a payroll card or other electronic payment device linked to a deposit account and given in exchange for goods or services rendered; a gift certificate sold below face value or at a volume discount to an employee, to a nonprofit or charitable organization, or to an educational institution for fund-raising purposes; or a gift certificate distributed to a consumer or employee under an awards, rewards, loyalty, or promotional program, if there is no charge to the consumer or employee.

H.B. 4317
Passed House 11/28/07
Adds a new Section 3F which prohibits charging an inactivity fee or other service fee to a consumer for the possession or use of a gift certificate. The bill also amends Section 3 to include all the prohibitions in the three new sections (3E, 3F, and 3G) among the general list of unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade that are unlawful under the act.

H.B. 4680
Passed House 11/28/07
Adds a new Section 3G which prohibits selling a gift certificate or gift card to a consumer that expires within a period of less than five years.

S.B. 274
Prohibits expiration dates or fees on gift certificates and retail gift cards.

S.B. 387
Passed Senate 6/13/07
Amends the Michigan Consumer Protection Act to make it an unlawful trade practice for a person engaged in the retail sale of goods or services to do any of the following in connection with a gift certificate or gift card for retail goods or services: 1) Issue to a consumer a gift certificate or card that expired in less than five years. 2) Fail to disclose the expiration date by conspicuously printing it on the gift certificate or card, if the certificate or card had an expiration date. 3) Fail to honor a gift certificate or card after it was issued and before its expiration date, if any. 4) Charge an inactivity fee or other similar service fee if the consumer did not use a gift certificate or card. “Gift certificate or gift card” would not include a certificate or card issued or sponsored by a financial institution or usable at multiple sellers of goods or services. (Separate subsidiaries of the same parent entity or separate franchisees of the same franchisor would not be considered multiple sellers.)

S.B. 388
To Senate for concurrence 11/28/07
Amends the Uniform Unclaimed Property Act to specify that a gift certificate, gift card, or credit memo would be presumed abandoned if it were not claimed or used five years after becoming payable or distributable, or if it were partially used or claimed but subsequently not claimed or used for five years.

Minnesota
H.F. 1136
S.F. 935
Requests Congress to limit fees and expiration dates associated with gift cards issued by federal banks.

Mississippi
H.B. 788
Died in committee 2/19/08
Requires merchants to pay customers the full amount of the remaining balance on a gift card or certificate when the customer uses the card or certificate to purchase goods or services from the merchant within 90 days after the date of issuance of the card or certificate and the balance is $10 or less.

S.B. 2318
Died in committee 2/19/08
Makes unlawful the sale of a gift certificate that contains an expiration date or a service fee, with certain exceptions.

Missouri
H.B. 1494
Prohibits the use of expiration dates or service fees on gift certificates. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

H.B. 1718
Prohibits the use of expiration dates earlier than five years after the date of issuance or post-purchase fees on gift certificates sold in Missouri. Any gift certificate issued after August 28, 2008, will not reduce in value and the holder cannot be penalized in any way for non-use or untimely redemption. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

H.B. 1966
Prohibits the use of expiration dates earlier than five years after the date of issuance or post-purchase fees on gift certificates sold in Missouri. Any gift certificate issued after August 28, 2008, will not reduce in value and the holder cannot be penalized in any way for non-use or untimely redemption. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

Nebraska
L.B. 668
Signed by governor 3/10/08
Amends Nebraska law regarding gift cards and gift certificates to prohibit unredeemed gift cards which are over $100 in value and do not contain any post sale finance charges or fees, from being presumed abandoned after three years.

New Jersey
A.B. 1261
Passed Assembly 3/13/08
S.B. 566
Makes it an unlawful practice to sell gift cards unless they are packaged or displayed in a manner that would prevent a person from viewing the gift card account number prior to purchasing the gift card. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the attorney general, the assessment of punitive damages and the awarding of treble damages and costs to the injured party.

A.B. 2363
Makes it an unlawful practice under the Consumer Fraud Act to sell certain products via an Internet auction. The bill targets those products typically stolen from retailers by shoplifting gangs and resold over the Internet. Makes it an unlawful practice for a person to sell a value loaded card via Internet auction unless the seller provides to the auctioneer, as well as the company’s general counsel, a written or electronic record of the purchase or acquisition of the value loaded card, including the serial number and amount of the value loaded card; the date of purchase of the value loaded card; and the name, address and phone number of the person from whom that value loaded card was purchased or acquired. If a person sells an aggregate of five or more value loaded cards in contemporaneous Internet auctions conducted by an Internet auctioneer, the Internet auctioneer has 24 hours to notify the retailer of the sale in writing or electronically. The auctioneer must give the retailer relevant information about the seller, including the sales history and all aliases and accounts used by the person.

A.B 2449
S.B. 612
Incorporates prepaid bank cards, defined in the bill as a form of gift card, into the existing statutory provisions which regulate the expiration dates and dormancy fees for gift cards and gift certificates generally. These prepaid bank cards include mall gift cards issued by third party banks or other financial institutions which are usable at multiple, unaffiliated merchants within a particular shopping mall. By incorporating prepaid bank cards into the existing gift card and gift certificate statutory requirements, the bill: 1) prohibits the expiration of prepaid bank cards within 24 months immediately following the date of sale by the original purchaser of the card; 2) prohibits the charging of a dormancy fee against a prepaid bank card within 24 months immediately following the date of sale, and within 24 months immediately following the most recent activity or transaction in which the card is used; 3) limits the dormancy fee, when applicable, charged against a prepaid bank card to no more than $2.00 per month; and 4) requires appropriate disclosure of the above card expiration and dormancy fee provisions to prepaid bank card consumers.

A.B. 2477
Provides that a gift certificate or gift card sold after the effective date of the bill will retain full unused value until presented in exchange for merchandise. Thus, this bill creates a gift certificate or gift card that never expires nor has a dormancy fee charged against it.

A.B. 2603
Link not available
Requires abandoned gift card balances to escheat to state.

S.B. 1087
Makes it an unlawful practice under the Consumer Fraud Act to sell certain products via an Internet auction. The bill targets those products typically stolen from retailers by shoplifting gangs and resold over the Internet. Makes it an unlawful practice for a person to sell a value loaded card via Internet auction unless the seller provides to the auctioneer, as well as the company’s general counsel, a written or electronic record of the purchase or acquisition of the value loaded card, including the serial number and amount of the value loaded card; the date of purchase of the value loaded card; and the name, address and phone number of the person from whom that value loaded card was purchased or acquired. If a person sells an aggregate of five or more value loaded cards in contemporaneous Internet auctions conducted by an Internet auctioneer, the Internet auctioneer has 24 hours to notify the retailer of the sale in writing or electronically. The auctioneer must give the retailer relevant information about the seller, including the sales history and all aliases and accounts used by the person.

New Mexico
S.B. 414
Specifies expiration date for gift certificates and amends the Uniform Unclaimed Property Act.

New York
A.B. 41
Prohibits the sale of gift certificates and gift cards that diminish in value due to dormancy; and prohibits surcharges and fees on gift certificates and gift cards.

A.B. 3751
Relates to the sale and use of gift certificates; requires that gift certificates last for at least seven years; requires that the date of issuance and the date of expiration of a gift certificate be either printed on the gift certificate, printed on a customer’s receipt, or available through an Internet and toll-free telephone service.

A.B. 5002
Requires that gift certificates, gift cards, or store credits have no expiration or diminution in value over time.

A.B. 5878
S.B. 4026
Provides that gift certificates and store credits shall not contain expiration dates, except in limited circumstances where they are issued for promotional purposes without value being given by the consumer; makes certificates or credit with an expiration date redeemable in cash or replaceable by a certificate or credit without an expiration date.

A.B. 8652
S.B. 5362
Prohibits the expiration of gift cards before five years from the date of purchase and prohibits decreasing the value of such cards for anything other than purchases.

Oklahoma
S.B. 1034
Passed Senate 3/6/07
Clarifies language in the Gift Certificate and Gift Card Disclosure Act.

Pennsylvania
H.B. 124
Further defines “unfair methods of competition” and “unfair or deceptive acts or practices” to include selling gift certificate with an expiration date or fees.

S.B. 928
Prohibits the sale or issuance of certain gift certificates with expiration dates and the imposition of transaction, service or convenience fees. Provides the attorney general certain powers and duties. Makes a repeal.

Rhode Island
H.B. 7398
Prohibits any person, firm, or corporation from charging a surcharge of any kind relating to gift certificates and/or gift cards.

S.B. 2066
Prohibits any person, firm, or corporation from charging a surcharge of any kind relating to gift certificates and/or gift cards.

South Dakota
H.B. 1258
Vetoed by governor 3/13/08
Requires that gift certificates conspicuously disclose information regarding fees and expiration dates

Tennessee
H.B. 55
S.B. 249
Requires any retailer issuing a gift certificate to permit the recipient of the gift certificate to redeem 50 percent of the face value of the certificate in cash.

H.B. 1840
S.B. 1693
Concerns Consumer Protection; expands certain requirements for gift certificates by removing exemption for gift certificates usable with multiple, unaffiliated sellers of goods or services.

H.B. 2522
H.B. 3209
Allows gift certificates with a monetary value of less than $10 to be redeemed in cash.

H.B. 3897
Prohibits the diminution in value of gift cards and certificates.

H.B. 4023
S.B. 4038
Prohibits the diminution in value of gift cards and certificates.

Utah
S.J.R. 11
Adopted 3/13/08
Gives the Legislative Management Committee items of study it may assign to the appropriate interim committee, including a study treating expired gift certificates as unclaimed property.

Virginia
H.B. 329
Requires each gift certificate that is charged a fee for maintenance, service, or inactivity to include a telephone number or Internet address where the holder of the certificate may obtain information regarding such fees. The measure also requires that any gift certificate that has a limit on the time for redemption, other than an expiration date, to include a telephone number or Internet address where the holder of the certificate may obtain information regarding about such limit.

H.B. 859
Prohibits the issuer of a gift certificate from (i) charging, within the 12 months following the date of its issuance, a maintenance fee or inactivity fee on a gift certificate or (ii) issuing a gift certificate that, within the 24 months following the date of its issuance, automatically expires, diminishes in value, or otherwise becomes unredeemable. Merchants issuing gift certificates with a permissible maintenance fee or inactivity fee are required to disclose to the purchaser the terms pertaining to such a fee. If a gift certificate is issued with an expiration date or other time limit on its redemption, the issuer is required to provide a statement thereof. The required disclosures shall be provided prior to the completion of the certificate’s purchase. Required information may be imprinted on the packaging material attached to the certificate at the time of sale. The definition of a gift certificate is expanded to include any record that contains a microprocessor chip, magnetic strip, or other storage medium that is prefunded and for which the value is adjusted upon each use.

Wisconsin
A.B. 360
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). Under the bill, a seller of a gift obligation must provide to a purchaser at the point of sale a conspicuous disclosure of any expiration date that applies to the gift obligation and the terms and amount of any service charge that apply to the gift obligation. The disclosure requirements under the bill do not apply to a document that evidences a transaction in which the obligation to provide goods or services extends to more than one seller of goods or services or to a gift obligation sold by a charitable organization or educational institution. The bill specifies that the bill’s disclosure requirements are not satisfied by a disclosure made available by telephone, at a physical address, by mail, or on an Internet Web site, unless the gift obligation is purchased on the Internet. Under the bill, if the Department of Agriculture, Trade and Consumer Protection (DATCP) has reasonable cause to believe a person has violated the provisions of the bill, and the person has not committed a previous violation, DATCP must send the person a warning letter. If a person has already received a warning letter relating to a separate violation, DATCP may seek injunctive relief or a fine up to $250 per violation.

A.B. 471
Regulates the sale and redemption of gift certificates, gift cards, and similar items (gift obligations). The bill prohibits the following: 1) failing to honor a valid gift obligation; 2) selling a gift obligation that is subject to an expiration date; 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer; and 4) reducing the value of a gift obligation as a condition of disclosing the value of the gift obligation. Under the bill, the prohibitions numbered 2 and 3, above, do not apply to a gift obligation given or sold for less than face value to a nonprofit organization or to a person who transfers the gift obligation to another primarily for the benefit of a nonprofit organization or to a gift obligation issued for no consideration. Also under the bill, if a person that owns a business intends to transfer ownership of the business or otherwise cease to operate the business, the person may not issue gift obligations that may be redeemed at the business, unless the intended transferee agrees to honor gift obligations issued by the person. The provisions of the bill do not apply to certain state chartered financial institutions to the extent that federal law preempts or prohibits the application of the provisions of the bill to certain federally chartered financial institutions. The Department of Agriculture, Trade and Consumer Protection or the district attorney, under the bill, may enforce the provisions of the bill by bringing an action for a forfeiture (civil penalty) of up to $10,000. Also, the bill creates a private right of action in which a person may recover the greater of twice the person’s pecuniary loss or $200 for each violation.

S.B. 191
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). Under the bill, a seller of a gift obligation must provide to a purchaser at the point of sale a conspicuous disclosure of any expiration date that applies to the gift obligation and the terms and amount of any service charge that apply to the gift obligation. The disclosure requirements under the bill do not apply to a document that evidences a transaction in which the obligation to provide goods or services extends to more than one seller of goods or services or to a gift obligation sold by a charitable organization or educational institution. The bill specifies that the bill’s disclosure requirements are not satisfied by a disclosure made available by telephone, at a physical address, by mail, or on an Internet Web site, unless the gift obligation is purchased on the Internet. Under the bill, if the Department of Agriculture, Trade and Consumer Protection (DATCP) has reasonable cause to believe a person has violated the provisions of the bill, and the person has not committed a previous violation, DATCP must send the person a warning letter. If a person has already received a warning letter relating to a separate violation, DATCP may seek injunctive relief or a fine up to $250 per violation.

S.B. 245
Regulates the sale and redemption of gift certificates, gift cards, and similar items (gift obligations). The bill prohibits the following: 1) failing to honor a valid gift obligation; 2) selling a gift obligation that is subject to an expiration date; 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer; and 4) reducing the value of a gift obligation as a condition of disclosing the value of the gift obligation. Under the bill, the prohibitions numbered 2 and 3, above, do not apply to a gift obligation given or sold for less than face value to a nonprofit organization or to a person who transfers the gift obligation to another primarily for the benefit of a nonprofit organization or to a gift obligation issued for no consideration. Also under the bill, if a person that owns a business intends to transfer ownership of the business or otherwise cease to operate the business, the person may not issue gift obligations that may be redeemed at the business, unless the intended transferee agrees to honor gift obligations issued by the person. The provisions of the bill do not apply to certain state chartered financial institutions to the extent that federal law preempts or prohibits the application of the provisions of the bill to certain federally chartered financial institutions. The Department of Agriculture, Trade and Consumer Protection or the district attorney, under the bill, may enforce the provisions of the bill by bringing an action for a forfeiture (civil penalty) of up to $10,000. Also, the bill creates a private right of action in which a person may recover the greater of twice the person’s pecuniary loss or $200 for each violation.