Leawood, Kan. – July 26, 2024: On June 24, 2024, the Privacy and Consumer Protection Committee of the California House amended Senate Bill 1272 (“SB 1272”) to make a technical correction to the statute. Specifically, the bill was amended to explicitly add “electronic gift cards” to the definition of “gift certificate” under the consumer protection statute. 2024 CA SB 1272 §1(a).
You may recall that under SB1272 the mandatory cash redemption amount for certain types of gift certificates would increase from $9.99 to $25.00 and would be “adjusted for inflation on January 1, 2026, and annually thereafter, based on the California Consumer Price Index and rounded to the nearest whole dollar amount.” 2024 CA SB 1272 §2(b)(2).
Specifically, the gift certificate definition would be amended to read, “(a) As used in this title, ‘gift certificate’ includes gift cards and electronic gift cards, but does not include any gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card. This exemption does not apply to a gift card usable only with affiliated sellers of goods or services.” 2024 CA SB 1272 §1(a). Thus, the proposed mandatory cash redemption requirement would apply to physical and electronic closed loop gift card programs that are redeemable at a single merchant or affiliated brands. It likely does not apply to cards that are redeemable at multiple unaffiliated merchants, for example, mall or shopping center gift card programs or open loop gift card programs.
If passed, the amended bill must return to the California Senate for consideration. The California Legislature is scheduled to adjourn on August 31, 2024. Card Compliant will continue to monitor the bill as it moves through the legislative process. If enacted, SB 1272 would be effective January 1, 2025.
To read the prior Card Alert on Senate Bill 1272 click here: Card Alert SB 1272.
To read California Senate Bill 1272 click here: California SB 1272.
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