Leawood, Kan. – May 5, 2023: As you may recall, the New York Consumer Protection Act was amended to require signage at points-of-sale warning of potential scams involving gift cards. The amendment will become effective June 20, 2023. Specifically, the new law requires [case been revised]: “No person, firm, partnership, association or corporation shall sell a gift certificate to a purchaser unless the seller displays a conspicuous notice at or near where the gift certificate is displayed or at or near the physical location where the sale occurs, that (i) cautions the purchaser about prepaid card scams, and (ii) instructs the purchaser on what to do if they suspect they might be a potential victim of such a scam.” NY GEN BUS § 396-i(2-b)(a).
The New York Consumer Protection Act was further amended to require the Consumer Protection Division of the State of New York to publish a model notice for sellers. The statute specifically requires: “The consumer protection division, as established in section ninety-four-a of the executive law, shall create a model notice which sellers may use to comply with the requirements of this section and shall make such notice accessible to sellers including, but not limited to, posting such notice on the consumer protection division’s website in a format available for sellers to print and display.” NY GEN BUS § 396-i(2-b)(b). To date, the Consumer Protection Division’s website has not been updated with a model notice for sellers, but Card Compliant is continuing to monitor the site.
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