Leawood, Kan. – August 9, 2024: As you may recall, New Jersey amended N.J.S.A. 56:8-110.1 to require retail merchants to train its employees on how to identify and respond to gift card fraud. See, 02.17.2022 Card Alert. In June, the New Jersey Assembly proposed additional amendments to its Unfair Trade and Practices law (“AB 4636”). If enacted AB 4636 would become effective six months after enactment.
The proposed amendment requires retail merchants that sell gift cards to: (i) post a conspicuous notice warning against gift card fraud, and (ii) inform consumers of what to do if they suspect gift card fraud. If enacted, AB 4636 would specifically require retailers to, “post a notice, in a conspicuous manner at or near the physical location where gift cards are displayed for sale in the establishment, to caution consumers about gift card fraud and to instruct consumers on steps to take if fraud is suspected.” 2024 A.B. 4636 §1(a)(2).
There are a few other US states that require gift card fraud warnings to be displayed where gift cards are sold, including New York, Rhode Island and Maryland. Unlike its state counterparts, New Jersey does not, at this time, provide any guidance on what constitutes a
“conspicuous notice.”
If a retail mercantile establishment violates the proposed law and does not display a fraud notice as described above, they will be subject to a civil penalty of $1,000. 2024 A.B. 4636 §1(b).
AB 4636 has been referred to the Assembly Consumer Affairs Committee. Card Compliant will continue to monitor the bill as it moves through the legislative process.
To read the proposed bill in full, click here: NJ AB 4636.
For additional information on how to prevent gift card scams you can visit: https://stopgiftcardscams.com/
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