Leawood, KS – February 28, 2022: The State of New York has enacted two bills which prohibit fees and expiration dates on gift cards and gift certificates. Senate Bill S3467B (S3467B) was introduced on January 29, 2021 and signed into law on December 10, 2021. Assembly Bill A4629C (A4629C) was first introduced on February 2, 2021 and signed into law on December 10, 2021. The legislative language in both S3467B and A4629C (collectively, the “Bills”) is the same. The Bills shall take effect on December 10, 2022, one year after becoming law.
The Bills generally prohibit all fees on gift certificates. Open loop gift certificates, defined as gift certificates “redeemable at multiple, unaffiliated merchants or service providers,” may be subject to an initial one-time activation or issuance fee reasonably related to the cost of the issuer issuing the open loop gift certificate, which shall not be more than $9.00.
The Bills also prohibit the sale of gift certificates that have a face value or balance that declines due to the passage of time or the dormancy of the gift certificate.
The Bills generally prohibit the expiration of gift certificates, except for promotional gift certificates, which may be subject to an expiration date of at least 9 years after the date on which the gift certificate was issued, or the date on which the funds were last loaded. Pursuant to these Bills, “promotional gift certificates” are defined as gift certificates issued for no consideration that include on the front of the gift certificate (i) a statement indicating that the card is issued for promotional purposes and (ii) the expiration date for the underlying funds.
Additionally, a gift certificate, other than an open loop gift certificate or a promotional gift certificate, with a remaining value of less than $5.00 may be redeemed upon request for its cash value.
To read Senate Bill S3467B click here: Senate Bill S3467B.
To read Assembly Bill A4629C click here: Assembly Bill A4629C.
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