Leawood, Kan. – March 2, 2020: New York Senate Bill 7905 was introduced by Senator Kevin Thomas on March 2, 2020. The proposed bill amends the general business law of New York to require notices of certain fraud scams when selling gift certificates and gift cards.
The proposed bill requires any seller of gift certificates to provide the following notice to purchasers: “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 PIN number or card number. If you feel that you are a victim of fraud, contact local law enforcement.”
The notice must be provided on any electronic payment system screen prior to purchaser finalizing payment; or posted in a conspicuous manner in the location where the sale occurs.
The bill is part of a general effort to address the ongoing battle against gift card fraud. Several states have proposed bills that would require any person or entity selling gift cards or gift certificates to provide notice to purchasers relating to such fraud, or training to employees to identify and stop potential fraud.
About the Bill Status:
New York Senate Bill 7905 was introduced on March 2, 2020. It has been referred to the consumer protection committee of the New York Center where it remains.
About the Compliance Libraries:
The Compliance Libraries provide a one stop location for comprehensive information on the laws, rules and standards regulating gift cards. Its features include the Regulatory Watch Center which tracks and releases information on new laws, rules and standards. For more visit www.compliancelibraries.com.