Leawood, Kan. – May 30, 2023: As you may recall, the New York Consumer Protection Act was amended to require: (i) signage at points-of-sale warning of potential scams involving gift cards; and (ii) the New York Consumer Protection Division to publish a model notice on their website regarding such warning of potential gift card scams. NY GEN BUS § 396-I(2-b). The amendments 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).
At the end of last week, the New York Consumer Protection Division published a model notice for this gift card fraud disclosure, pursuant to amendments to § 396-I(2-b)(b) of the New York Consumer Protection Act. The following are those model notices, along with size requirements:
These notices are also accessible and available on the New York Consumer Protection Division website for sellers to print and display. To view and print these displays on the division’s website, click this link: Gift Card Scam Alert Sign.
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