Leawood, Kan. – February 23, 2024: Last month, the Nebraska legislature introduced Legislative Bill 955 (“LB 955”) that would require signage at points-of-sale warning of potential scams involving gift cards. It further provides for a civil penalty for violations of the provisions. The bill is currently silent as to when it would become effective.
LB 955 would require business entities to post a notice at the location of where gift cards and gift certificates are sold. 2024 LB955 §1(2). Specifically, it provides that the notice shall state, “Protect yourself from prepaid card scams, including requests related to lotteries, taxes, employment status, or utility payments. Do not provide any prepaid card information to someone you do not know, including the PIN number or card number. If you feel that you are a victim of fraud, contact local law enforcement.” Id. This notice shall be posted in a “conspicuous manner in the location where the sale occurs” or for electronic payment systems, “notice can be displayed on a screen that appears prior to when the final payment will be made.” Id. at §1(3)(a) & (b).
LB 955 defines “gift card” and “gift certificate” to mean “a certificate, electronic card, or other prefunded record that (a) is usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo, or is usable a multiple, unaffiliated merchants or service providers, (b) is issued in a specified amount, (c) may or may not be increased in value or reloaded, (d) is purchased or loaded on a prepaid basis for the future purchase or delivery of any goods or services, and (e) is honored upon presentation.” Id. at §1(1).
The bill assigns the enforcement power of this law to the Attorney General and allows the Attorney General to seek a civil penalty up to $1,000 for each violation. Id. at §1(4). The Attorney General may also seek “equitable relief to restrain any violation” but it does not provide any further guidance or examples on what type of equitable relief may be awarded. Id.
A hearing was scheduled in the Senate Committee on Banking, Commerce and Insurance Committee. It is unclear whether the committee took any action regarding the bill. In order to move forward, LB 955 would need to be approved by the Banking, Commerce and Insurance Committee. Card Compliant will continue to monitor the bill.
To read Nebraska Legislative Bill 955 click here: Nebraska Legislative Bill 955.
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