HB859: Gift certificates; prohibited practices.

Chief Patron

Del. Adam Ebbin (D-49)

Adam Ebbin (D-49)
Arlington, VA
Served: 2004–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

02/12/2008: Failed to Pass in Committee

View Entire History

Summary

Gift certificates.  Prohibits the issuer of a gift certificate from (i) charging, within the 12 months following the date of its issuance, a maintenance fee or inactivity fee on a gift certificate or (ii) issuing a gift certificate that, within the 24 months following the date of its issuance, automatically expires, diminishes in value, or otherwise becomes unredeemable.  Merchants issuing gift certificates with a permissible maintenance fee or inactivity fee are required to disclose to the purchaser the terms pertaining to such a fee.  If a gift certificate is issued with an expiration date or other time limit on its redemption, the issuer is required to provide a statement thereof.  The required disclosures shall be provided prior to the completion of the certificate's purchase.  Required information may be imprinted on the packaging material attached to the certificate at the time of sale.  The definition of a gift certificate is expanded to include any record that contains a microprocessor chip, magnetic strip, or other storage medium that is prefunded and for which the value is adjusted upon each use.