Leawood, Kan. – November 8, 2024: At the end of September, the Delaware Governor signed House Bill 317 (“HB 317”) to amend its Prohibited Trade Practices Law to require all sellers of third-party gift cards to display a notice of potential scams involving gift cards. 2024 DE HB 317 §2510A. This bill took effect upon being signed into law.
Specifically, HB 317 requires that “no person, firm, partnership, association, retailer or corporation may a sell a gift card to a purchaser unless the seller displays a conspicuous notice at or near where the gift card is physically displayed and at or near each physical location where the sale occurs.” Id. §2510A(b). It also requires that the notice “must caution the purchaser about prepaid card scams and instruct the purchaser on what to do if they suspect they might be a potential victim of such a scam.” Id. at §2510A(c).
HB 317 defines “gift card” to mean “a tangible electronic payment device that: (1) [i]s issued in a specific amount, (2) [m]ay or may not be increased in value or reloaded, (3) [i]s purchased and/or loaded on a prepaid basis for the future purchase or delivery of any goods or services, and (4) [i]s honored upon presentation at third-party locations.” Id. at §2510A(a).
Unlike similar newly enacted fraud protection laws and introduced bills, this bill does not (1) require training of employees, (2) provide any examples or guidance on the types of warning to provide, or (3) assess civil penalties for violations.
To read Delaware HB 317 click here: Delaware House Bill 317.
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