Bill Text: IL HB3785 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that when a gift certificate is redeemed by a consumer, the seller shall return the remaining balance on the gift certificate in the form of cash or store credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3785 Detail]
Download: Illinois-2023-HB3785-Introduced.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Consumer Fraud and Deceptive Business | |||||||||||||||||||
5 | Practices Act is amended by changing Section 2SS as follows:
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6 | (815 ILCS 505/2SS)
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7 | Sec. 2SS. Gift certificates. | |||||||||||||||||||
8 | (a) "Gift certificate" means a record evidencing a | |||||||||||||||||||
9 | promise, made for consideration, by the seller or issuer of | |||||||||||||||||||
10 | the record that goods or services will be provided to the | |||||||||||||||||||
11 | holder of the record for the value shown in the record and | |||||||||||||||||||
12 | includes, but is not limited to, a record that contains a | |||||||||||||||||||
13 | microprocessor chip, magnetic stripe or other means for the | |||||||||||||||||||
14 | storage of information that is prefunded and for which the | |||||||||||||||||||
15 | value is decremented upon each use, a gift card, an electronic | |||||||||||||||||||
16 | gift card, stored-value card or certificate, a store card or a | |||||||||||||||||||
17 | similar record or card. "Gift certificate" also includes a | |||||||||||||||||||
18 | credit slip issued by a store to a consumer who returns goods | |||||||||||||||||||
19 | that enables the consumer to receive other goods of similar | |||||||||||||||||||
20 | value in exchange for the returned goods. For purposes of this | |||||||||||||||||||
21 | Act, the term "gift certificate" does not include any of the | |||||||||||||||||||
22 | following: | |||||||||||||||||||
23 | (i) prepaid telecommunications and technology cards |
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1 | including, but not limited
to, prepaid telephone calling | ||||||
2 | cards, prepaid technical support cards, and prepaid | ||||||
3 | Internet disks that are distributed to or purchased by a | ||||||
4 | consumer; | ||||||
5 | (ii) prepaid telecommunications and technology cards | ||||||
6 | including, but not
limited to, prepaid telephone calling | ||||||
7 | cards, prepaid technical support cards, and prepaid | ||||||
8 | Internet disks that are provided to a consumer pursuant to | ||||||
9 | any award, loyalty, or promotion program without any money | ||||||
10 | or other thing of value being given in exchange for the | ||||||
11 | card; or | ||||||
12 | (iii) any gift certificate usable with multiple | ||||||
13 | sellers of goods or services. | ||||||
14 | (b) On or after January 1, 2008, no person shall sell a | ||||||
15 | gift certificate that is subject to: (1) an expiration date | ||||||
16 | earlier than 5 years after the date of issuance; or (2) a | ||||||
17 | post-purchase fee.
Any gift certificate issued prior to | ||||||
18 | January 1, 2008 that is subject to a fee must contain a | ||||||
19 | statement clearly and conspicuously printed on the gift | ||||||
20 | certificate stating whether there is a fee, the amount of the | ||||||
21 | fee, how often the fee will occur, that the fee is triggered by | ||||||
22 | inactivity of the gift certificate, and at what point the fee | ||||||
23 | will be charged. The statement may appear on the front or back | ||||||
24 | of the gift certificate in a location where it is visible to | ||||||
25 | any purchaser prior to the purchase. | ||||||
26 | (c) The face value of a gift certificate issued on or after |
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1 | January 1, 2008 may not be reduced in value and the holder of a | ||||||
2 | gift certificate issued after January 1, 2008 may not be | ||||||
3 | penalized in any way for non-use or untimely redemption of the | ||||||
4 | gift certificate.
Any gift certificate issued prior to January | ||||||
5 | 1, 2008 that is subject to an expiration date must contain a | ||||||
6 | statement clearly and conspicuously printed on the gift | ||||||
7 | certificate stating the expiration date. The statement may | ||||||
8 | appear on the front or back of the gift certificate in a | ||||||
9 | location where it is visible to any purchaser prior to the | ||||||
10 | purchase. | ||||||
11 | (d)
Subsection (c) does not apply to any gift certificate | ||||||
12 | issued prior to January 1, 2008 that contains a toll free phone | ||||||
13 | number and a statement clearly and conspicuously printed on | ||||||
14 | the gift certificate stating that holders can call the toll | ||||||
15 | free number to find out the balance on the gift certificate, if | ||||||
16 | applicable, and the expiration date. The toll free number and | ||||||
17 | statement may appear on the front or back of the gift | ||||||
18 | certificate in a location where it is visible to any purchaser | ||||||
19 | prior to the purchase. | ||||||
20 | (d-5) After a gift certificate issued on or after the | ||||||
21 | effective date of this amendatory Act of the 103rd General | ||||||
22 | Assembly is redeemed by a consumer, the seller shall return | ||||||
23 | the remaining balance on the gift certificate in the form of | ||||||
24 | cash or store credit. | ||||||
25 | (e) This Section does not apply to any of the following | ||||||
26 | gift certificates: |
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1 | (i) Gift certificates that are distributed by the | ||||||
2 | issuer to a consumer pursuant to an
awards, loyalty, or | ||||||
3 | promotional program without any money or thing of value | ||||||
4 | being given in direct exchange or solely for the gift | ||||||
5 | certificate by the consumer. | ||||||
6 | (ii) Gift certificates that are sold below face value | ||||||
7 | at a volume discount to employers or to nonprofit and | ||||||
8 | charitable organizations for fundraising purposes if the | ||||||
9 | expiration date on those gift certificates is not more | ||||||
10 | than 30 days after the date of sale. | ||||||
11 | (iii) Gift certificates that are issued for a food | ||||||
12 | product.
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13 | (Source: P.A. 97-954, eff. 1-1-13.)
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