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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3785 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED:
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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.
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| | A BILL FOR |
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| | HB3785 | | LRB103 25025 SPS 51359 b |
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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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