Gift cards have become an increasingly popular way for consumers to make purchases and for businesses to attract customers. However, the laws surrounding gift cards can be complex and vary by state. In the United States, there are several federal and state laws that regulate gift cards, including the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. This article will examine five key gift card laws that consumers and businesses should be aware of.
Key Points
- The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 regulates gift card expiration dates and fees.
- Gift card balances must be refunded if the card is lost or stolen and the consumer has proof of purchase.
- Some states have laws that prohibit the sale of gift cards with expiration dates or fees.
- Gift cards must be clearly labeled with the terms and conditions, including any fees or expiration dates.
- Consumers have the right to request a refund or replacement of a gift card if it is defective or unused.
Gift Card Expiration Dates and Fees
The CARD Act of 2009 prohibits gift card issuers from imposing expiration dates or fees on gift cards unless the card has been inactive for at least 12 months. This means that consumers have a minimum of five years to use their gift cards before they can expire. Additionally, gift card issuers are prohibited from charging dormancy fees or other types of fees on gift cards unless the consumer has been inactive for at least 12 months.
Gift Card Refunds and Replacements
Gift card balances must be refunded if the card is lost or stolen and the consumer has proof of purchase. Consumers can also request a replacement gift card if the original card is defective or unused. However, some gift card issuers may charge a fee for replacing a lost or stolen gift card, so it’s essential for consumers to review the terms and conditions of their gift card before purchasing.
State-Specific Gift Card Laws
Some states have laws that regulate gift cards more strictly than federal law. For example, California, Massachusetts, and New York have laws that prohibit the sale of gift cards with expiration dates or fees. These laws are designed to protect consumers from unfair practices and ensure that they can use their gift cards without worrying about expiration dates or fees.
Gift Card Disclosure Requirements
Gift cards must be clearly labeled with the terms and conditions, including any fees or expiration dates. This information must be provided to the consumer at the time of purchase, and it must be displayed prominently on the gift card or packaging. Consumers should always review the terms and conditions of their gift card before purchasing to ensure that they understand the rules and regulations surrounding the card.
Consumer Rights and Gift Cards
Consumers have the right to request a refund or replacement of a gift card if it is defective or unused. Additionally, consumers can file a complaint with the Federal Trade Commission (FTC) or their state’s Attorney General’s office if they experience any issues with their gift card. Consumers should also be aware of their rights under state and federal law, including the right to a refund or replacement if the gift card is lost or stolen.
| State | Gift Card Law |
|---|---|
| California | No expiration dates or fees allowed |
| Massachusetts | No expiration dates or fees allowed |
| New York | No expiration dates or fees allowed |
| Federal Law | Expiration dates and fees allowed after 12 months of inactivity |
What is the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009?
+The CARD Act of 2009 is a federal law that regulates credit cards and gift cards. It prohibits gift card issuers from imposing expiration dates or fees on gift cards unless the card has been inactive for at least 12 months.
Can I get a refund for a lost or stolen gift card?
+Yes, gift card balances must be refunded if the card is lost or stolen and the consumer has proof of purchase. However, some gift card issuers may charge a fee for replacing a lost or stolen gift card.
What are the disclosure requirements for gift cards?
+Gift cards must be clearly labeled with the terms and conditions, including any fees or expiration dates. This information must be provided to the consumer at the time of purchase, and it must be displayed prominently on the gift card or packaging.
In conclusion, gift card laws are complex and vary by state. Consumers and businesses should be aware of the five key gift card laws outlined in this article, including the CARD Act of 2009, gift card refunds and replacements, state-specific gift card laws, gift card disclosure requirements, and consumer rights. By understanding these laws, consumers can avoid potential issues and disputes, and businesses can ensure that they are complying with federal and state regulations.