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.