Bill Text: NY A05915 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to the sale and use of gift certificates; requires that gift certificates last for at least seven years; requires that the date of issuance and the date of expiration of a gift certificate be either printed on the gift certificate, printed on a customer's receipt, or available through an internet and toll-free telephone service.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2014-01-08 - referred to consumer affairs and protection [A05915 Detail]

Download: New_York-2013-A05915-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5915
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 8, 2013
                                      ___________
       Introduced by M. of A. ORTIZ, ROBINSON -- Multi-Sponsored by -- M. of A.
         CLARK, HIKIND, RIVERA, WRIGHT -- read once and referred to the Commit-
         tee on Consumer Affairs and Protection
       AN  ACT  to  amend the general business law, in relation to the sale and
         use of gift certificates and gift cards
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new section
    2  399-j to read as follows:
    3    S  399-J.  SALE AND USE OF GIFT CERTIFICATES AND GIFT CARDS. 1.  DEFI-
    4  NITIONS. FOR PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
    5  THE FOLLOWING MEANINGS:
    6    A.  "GIFT  CERTIFICATE"  SHALL  MEAN  A  WRITING  IDENTIFIED AS A GIFT
    7  CERTIFICATE BY A CONSUMER FOR USE BY A CUSTOMER, WHETHER OR NOT REDEEMA-
    8  BLE FOR CASH, AND USABLE FOR ITS FACE AMOUNT IN LIEU  OF  CASH  FOR  THE
    9  EXCHANGE  OF GOODS OR SERVICES SUPPLIED BY THE SELLER. GIFT CERTIFICATES
   10  SHALL INCLUDE ELECTRONIC OR MAGNETIC CARDS WITH A BANKED DOLLAR VALUE, A
   11  MERCHANDISE CREDIT, A CERTIFICATE WHERE THE ISSUER HAS RECEIVED  PAYMENT
   12  FOR  THE FULL FACE VALUE FOR THE FUTURE PURCHASE OR DELIVERY OF GOODS OR
   13  SERVICES, AND ANY OTHER MEDIUM THAT EVIDENCES THE  GIVING  OF  CONSIDER-
   14  ATION IN EXCHANGE FOR THE RIGHT TO REDEEM IT FOR GOODS OR SERVICES OF AT
   15  LEAST  AN  EQUAL  VALUE. PRE-PAID CALLING ARRANGEMENTS, SUCH AS PRE-PAID
   16  PHONE CARDS, ARE NOT CONSIDERED GIFT CERTIFICATES  FOR  THE  PURPOSE  OF
   17  THIS SECTION.
   18    B.  "ELECTRONIC  GIFT  CARD" OR "MAGNETIC GIFT CARD" SHALL MEAN A CARD
   19  WITH A BANKED DOLLAR VALUE THAT MAY BE REDEEMED FOR  GOODS  OR  SERVICES
   20  WHEREBY THE DOLLAR AMOUNT OF THE CARD IS REDUCED ACCORDINGLY.
   21    2.  DURATION  OF GIFT CERTIFICATE. A. ANY GIFT CERTIFICATE ISSUED TO A
   22  CONSUMER SHALL BE VALID AND REDEEMABLE FOR A MINIMUM OF SEVEN YEARS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09373-01-3
       A. 5915                             2
    1    B. ANY GIFT CERTIFICATE, OTHER THAN AN  ELECTRONIC  OR  MAGNETIC  GIFT
    2  CARD, THAT IS NOT CLEARLY MARKED WITH BOTH A DATE OF ISSUANCE AND A DATE
    3  OF EXPIRATION SHALL BE VALID AND REDEEMABLE IN PERPETUITY.
    4    C. AN ELECTRONIC OR MAGNETIC GIFT CARD THAT IS NOT CLEARLY MARKED WITH
    5  BOTH  A  DATE OF ISSUANCE AND A DATE OF EXPIRATION MUST HAVE THE DATE OF
    6  ISSUANCE AND THE DATE OF EXPIRATION EITHER: (I)  CLEARLY  PRINTED  ON  A
    7  SALES  RECEIPT,  GIVEN  TO THE CUSTOMER AT THE TIME OF THE SALE; OR (II)
    8  AVAILABLE THROUGH A WEBSITE AND A TOLL-FREE TELEPHONE NUMBER  LISTED  ON
    9  THE  CARD.  IF  THE  CUSTOMER DOES NOT RECEIVE A RECEIPT WITH RESPECTIVE
   10  DATES PRINTED ON IT, OR SUCH DATES ARE NOT AVAILABLE THROUGH THE  INTER-
   11  NET AND A TOLL-FREE TELEPHONE LINE, THEN THE ELECTRONIC OR MAGNETIC GIFT
   12  CARD SHALL BE VALID AND REDEEMABLE IN PERPETUITY.
   13    D.  NO  GIFT  CERTIFICATE SHALL DIMINISH IN VALUE FOR ANY REASON OTHER
   14  THAN FOR THE PURCHASE OF GOODS OR SERVICES BY THE CONSUMER.
   15    3. REDEMPTION OF REMAINDER OF A GIFT CERTIFICATE. IF  A  GIFT  CERTIF-
   16  ICATE  HAS LESS THAN TEN PERCENT OF ITS ORIGINAL BALANCE REMAINING AFTER
   17  A PURCHASE, THE MERCHANT MUST OFFER THE CUSTOMER A CHOICE OF HAVING  THE
   18  REMAINING BALANCE RETURNED IN THE FORM OF CASH OR IN THE FORM OF ANOTHER
   19  GIFT CERTIFICATE.
   20    4. FINES AND PENALTIES FOR FAILING TO REDEEM A VALID GIFT CERTIFICATE.
   21  ANY  PERSON  WHO  HAS  BEEN  INJURED  BY REASON OF ANY VIOLATION OF THIS
   22  SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
   23  FUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS ACTUAL  DAMAGES  OR  THREE
   24  HUNDRED  DOLLARS,  WHICHEVER IS GREATER, OR BOTH SUCH ACTIONS. THE COURT
   25  MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN  AMOUNT  NOT
   26  TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TWO THOUSAND FIVE HUNDRED
   27  DOLLARS,  IF  THE  COURT  FINDS  THE  DEFENDANT  WILLFULLY  OR KNOWINGLY
   28  VIOLATED THIS SECTION. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO
   29  A PREVAILING PLAINTIFF.
   30    S 2. This act shall take effect on the ninetieth day  after  it  shall
   31  have  become a law and shall apply to all gift certificates issued on or
   32  after such effective date.