Leawood, Kan. – September 1, 2023: Oconomowoc, Wisconsin City Council adopted Ordinance No. 23-O1046 (the “Ordinance”), creating section 9.32 of Chapter 9 of the Oconomowoc’s Municipal Zoning Ordinance. The Ordinance seems to be aimed at targeting and deterring fraud. 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. 23-O1046, §9.32(1) (2023).
The Ordinance requires, “any person that sells a third-party gift card with a value at or in excess of One Hundred ($100) Dollars to an individual on behalf of a retail establishment…” “to require the individual purchasing the third-party gift card to display proof of identification and shall verify… proof of identification matches the individual’s form of payment.” Oconomowoc, Wisconsin, Ordinance No. 23-O1046, §9.32(2) (2023). The Ordinance also specifies that it is “unlawful for a retail establishment to allow the purchase of third-party gift cards with a value at or in excess of One Hundred ($100) Dollars at self-checkout kiosks where customers themselves scan merchandise and pay without the assistance of an employee….” Ordinance No. 23-O1046, §9.32(3) (2023).
Further, the Ordinance specifies that persons or legal entities in violation of this ordinance shall be subject to the subject to civil penalties of up to $1,000. Ordinance No. 23-O1046, §9.32(4) & §25.04(1)(a) (2023). The ordinance became effective on June 23, 2023.
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