As gift cards continue to grow in popularity, more and more states are passing laws to regulate their use. Florida recently introduced a new gift card law that has left many business owners and consumers confused. Understanding this law is essential for anyone who buys or sells gift cards in the state. In this article, we’ll take a closer look at what the law entails and how it might affect you.
What is Florida’s new gift card law?
Why was the law enacted?
How does the law affect gift card issuers?
What are the penalties for non-compliance?
How does the law benefit consumers?
In conclusion, understanding Florida’s new gift card law is crucial for both consumers and businesses. The law provides greater protection for consumers by ensuring that gift cards cannot expire for at least five years and that fees are clearly disclosed. For businesses, the law promotes fairness and transparency in gift card sales, helping to build trust and loyalty among customers. Overall, the new law is a win-win for all parties involved in gift card transactions.
Gift cards are unique gifts to give anyone for a special occasion. Not only are they the more preferred gift for the receiver, but they are also practical and pose fewer issues than buying an actual gift. Despite this, many laws are surrounding these cards that cannot be ignored. These laws regard expiration dates, fees, and redemption. This rule is a federal law that applies to every state in the country. Also, the receiver of the gift card must know of any terms and conditions that come with the card. This rule includes any information about the expiration date. However, some states have enforced specific circumstances to this rule that the receiver must follow. To view the specific laws regarding expiration dates in each state, check out this chart for more information. When it comes to fees, each state has different laws regarding the charges someone can have during a transaction. However, some fee laws apply to every state, and those are. There must be a disclosure of any fees either on the card or on the packaging of the card. If states allow post-sale fees, then these fees cannot apply until after one year of inactivity. There shouldnt be more than one post-sale fee per month. On the other hand, some states make their versions of laws and legislation about post-sale fees for gift cards. These fees are charged after a purchase has occurred and includes. Once again, it is required by federal law that these fees are disclosed somewhere with the gift card. However, this does come with some conditions and rules, especially in different states. In some states, people can only redeem gift cards once they reach a specific amount. Many states, on the other hand, do not apply this rule to gift cards. They will require individuals to spend all the money on the gift card until it expires. If the person still has a balance once the gift cards expire, then that balance will be turned over to the state. This time frame of when the money is turned over to the state solely depends on where a person lives. Fees When it comes to fees, each state has different laws regarding the charges someone can have during a transaction. However, some fee laws apply to every state, and those are There must be a disclosure of any fees either on the card or on the packaging of the card. These fees are charged after a purchase has occurred and includes Maintenance fees Activation fees Transaction fees Once again, it is required by federal law that these fees are disclosed somewhere with the gift card. If the person still has a balance once the gift cards expire, then that balance will be turned over to the state After five years of inactivity After two years of inactivity This time frame of when the money is turned over to the state solely depends on where a person lives. Gift Card Laws.
The law provides that gift cards cannot expire within five years from the date they were activated and generally limits inactivity fee on gift cards except in certain circumstances, such as if there has been no transaction for at least 12 months. The federal law creates a floor for regulation and leaves room for state regulation on redeeming gift cards for cash and unclaimed property provisions. NCSL is unable to answer questions or provide guidance to citizens or businesses regarding gift cards and gift certificate laws and practices. If you have questions regarding issuing or redeeming a gift card or gift certificate or a retailers practices, please contact the Office of the Attorney General in your state. The box allows you to conduct a full text search or use the dropdown menu option to select a state. A person shall not sell or issue a gift certificate, a store gift card, or a general use prepaid card that is subject to an expiration date earlier than two years from the date of issuance or sale of the gift certificate, store gift card, or general use prepaid card. A dormancy fee, an inactivity charge or fee, or a service fee shall not be charged on a gift certificate, a store gift card, or a general use prepaid card before two years from the date of issuance or sale of the gift certificate, store gift card, or general use prepaid card. Gift certificate redeemable in cash subject to escheat if unclaimed by owner by more than five years. Certificates issued for food, products, goods or services are not subject to escheat provisions. A linked prepaid card shall not include an expiration date relative to the underlying funds that are redeemable through the use of the applicable card, code or device. A gift certificate or credit memo sold or issued for consideration in this state may not have any type of postsale charge or fee imposed on the gift certificate or credit memo, including, but not limited to, service charges, dormancy fees, account maintenance fees, or cash-out fees. On or after Jan.
