Late last month the Senate voted to enhance the existing gift certificate law by establishing consumer protections, including a $300 fine for violations of the statute, which makes gift certificates redeemable at full face value for a period of seven years without deductions or service fees. The Senate bill treats electronic gift cards the same way, as long as they are not for use with multiple, unaffiliated sellers.
“Especially during the holiday season, consumers should be wary of the conditions attached to gift purchases,” said Sen. Pam Resor. “This legislation would make terms associated with gift certificates and electronic gift cards more transparent and will help protect consumers from being misled.”
The consumer-friendly legislation also states that notifications must be put in writing on certificates and their packaging, informing customers about purchase, activation, renewal or cancellation fees associated with the gift certificate.
The Senate bill, which sets up specific consumer protections with regard to the expiration of gift certificates, will now go to the House of Representatives.
