Leawood, Kan. – November 14, 2022: Minnetonka, Minnesota City Council adopted Ordinance No. 2022-14 (the “Ordinance”), modifying section 1045.047 of the Minnetonka City’s Code. To target and deter fraud, the Ordinance will require consumers to provide identification to purchase third-party gift cards at any retail establishment. Minnetonka, Minn., Ordinance No. 2022-14, §4 (2022). Third-party gift cards are defined as cards that are “reloadable or non-reloadable prepaid cards sold at retail establishments and used to make purchases via either the American Express, MasterCard, or Visa networks, for which the value is decreased upon each purchase.” Ordinance No. 2022-14, §3(h). The Ordinance further specifies that identification must be used only when a credit, debit, or similar card-type payment method is used and the identification must match the name on the method used for payment. The Ordinance does not apply to third-party gift card purchases when using mobile phone payment applications. Ordinance No. 2022-14, §3(b).
Additionally, the Ordinance prohibits purchases of third-party gift cards at self-checkout kiosks when an employee is not present to verify identification. Ordinance No. 2022-14, §5. The Ordinance further specifies, that it is a misdemeanor for any business owner or agent to fail to establish procedures or fail to provide periodic employee training of the Ordinance, and employees who fail to verify identification shall be subject to civil penalties. Ordinance No. 2022-14, §6.
The ordinance shall become effective January 18, 2023, 90 days after the publication of the Ordinance on October 20, 2022.
To read Minnetonka, Minn., Ordinance No. 2022-14 click here: Ordinance No. 2022-14.
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