Illinois Rings In 2008 With New Gift Card Law

Andy Miofsky — Wed, 02 Jan 2008 23:15:02 GMT

Beginning January 2008 retailers selling gift cards and gift certificates in the state of Illinois are required to honor those cards for a minimum of 5 years and businesses are not allowed to assess fees or charges against the card balance. In a typical gift card transaction, a business receives payment upfront in return for a promise to supply a good or service to the card holder at some time in the future. This new law, HB 369, Public Act 095-0525, requires businesses to honor that promise and to provide full value for a period not less than 5 years. In the past, some merchants charged a fee or forfeited the remaining amount on the card if the entire balance was not used at the time of the purchase. Other merchants charged a monthly fee on the unused balance of the card. In those examples, merchants received full payment in exchange for the card, but did not provide full value to the consumer. Under the new law it is a consumer fraud and deceptive business practice act violation to sell a gift card in violation of the above terms. The law does make an exception for cards issued for food products, telecommunication cards and cards issued for redemption by multiple sellers. Violations of the law should be brought to the attention of the Illinois Attorney General or your Illinois consumer law attorney.

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Illinois Rings In 2008 With New Gift Card Law