For Immediate Release

December 13, 2005

GILL BILL TO PROTECT GIFT CARD CONSUMERS APPROVED

TRENTON - A bill sponsored by Senator Nia H. Gill which would enact a number of protections for gift card consumers, including a provision requiring that gift cards could not expire within a two-year period after purchase, was approved by the Assembly yesterday, receiving final legislative approval.

"This is truly a holiday present for the people of New Jersey ," said Senator Gill, D-Essex and Passaic , the Chair of the Senate Commerce Committee. "These consumer protection reforms are sorely needed to safeguard customers from hidden guidelines and unfair practices of retailers who offer gift cards. Gift shoppers should know what they're buying, and this bill would provide greater openness in gift card rules and regulations, as well as extending the time period a card may be redeemed."

The bill, a Senate Committee substitute for S-2187 and S-2296, would require that gift cards sold within New Jersey could not expire within a 24-month period following purchase. The bill also would require that no dormancy fees, charged by some stores on unredeemed gift cards, be levied until after the 24-month period, and that dormancy fees could not exceed more than $2 a month.

Finally, the bill requires that if there are expiration dates or dormancy fees on any gift card, that such provisions be included on the card in large enough type to read clearly. The retailer would also have to provide a telephone number for the consumer to call and obtain additional information regarding expiration dates and dormancy fees.

"There is a phrase in commercial law that unless otherwise posted, 'let the buyer beware'," said Senator Gill. "However, when the consumer isn't even made aware of the stipulations surrounding a gift card, that's a flagrant abuse of the inherent trust of the customer-retailer transaction. We need to let consumers know just what they are buying into when it comes to gift cards, and open, honest transactions are the only way to accomplish this.'"

he bill now heads to the Governor to be signed into law.