Bill Text: NY A04730 | 2017-2018 | General Assembly | Introduced

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Bill Title: Prohibits the sale of gift certificates and gift cards that diminish in value due to dormancy; and prohibits surcharges and fees on gift certificates and gift cards.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-06-04 - held for consideration in consumer affairs and protection [A04730 Detail]

Download: New_York-2017-A04730-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4730
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 3, 2017
                                       ___________
        Introduced by M. of A. WALTER -- read once and referred to the Committee
          on Consumer Affairs and Protection
        AN ACT to amend the general business law, in relation to service charges
          on 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  396-ii to read as follows:
     3    § 396-ii. Gift certificates and gift cards. 1.  For  the  purposes  of
     4  this section:
     5    (a)  "gift  certificates"  shall mean a written promise in a specified
     6  amount which cannot be increased  in  value  on  the  face  thereof  and
     7  purchased  by  a consumer in exchange for payment to provide merchandise
     8  or service in a specified amount or of equal value to the bearer of  the
     9  certificate.
    10    (b) "gift cards" shall mean a card which may be purchased by a consum-
    11  er in exchange for payment to provide merchandise or service in a speci-
    12  fied amount of equal value to the bearer of the card.
    13    (c)  "dormancy" shall mean non-use of a gift certificate or gift card.
    14  Adding value or balance inquiries constitutes use of the gift card.
    15    2. It shall be unlawful for any business entity,  including,  but  not
    16  limited to, sole proprietorship, firm, company, partnership, association
    17  or  corporation  to  sell  to a consumer gift certificates or gift cards
    18  that diminish in value due to dormancy after such  gift  certificate  or
    19  gift card is purchased.
    20    3.  No  surcharges  or  fees, including, but not limited to, dormancy,
    21  administrative, service, retroactivity or reactivation shall be assessed
    22  against gift certificates or gift cards.
    23    4. The terms and conditions of the gift certificate or gift card shall
    24  be clearly and conspicuously stated thereon. The  terms  and  conditions
    25  shall include, but are not limited to, the expiration date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04745-01-7
        A. 4730                             2
     1    5. Whenever there shall be a violation of this section, an application
     2  may  be  made  by  the attorney general in the name of the people of the
     3  state of New York to a court or justice having jurisdiction by a special
     4  proceeding to issue an injunction, and upon notice to the  defendant  of
     5  not  less than five days, to enjoin and restrain the continuance of such
     6  violation; and if it shall appear to the satisfaction of  the  court  or
     7  justice  that  the  defendant  has,  in  fact, violated this section, an
     8  injunction may be  issued  by  such  court  or  justice,  enjoining  and
     9  restraining  any  further  violation,  without  requiring proof that any
    10  person has, in fact, been  injured  or  damaged  thereby.  In  any  such
    11  proceeding,  the  court  may  make allowances to the attorney general as
    12  provided in paragraph six of subdivision  (a)  of  section  eighty-three
    13  hundred  three  of  the civil practice law and rules and direct restitu-
    14  tion. Whenever the court  shall  determine  that  a  violation  of  this
    15  section  has  occurred, the court may impose a civil penalty of not more
    16  than one thousand dollars for such violation.  In  connection  with  any
    17  such  application,  the attorney general is authorized to take proof and
    18  make a determination of the relevant facts and  to  issue  subpoenas  in
    19  accordance with the civil practice law and rules.
    20    §  2.  This  act  shall take effect on the sixtieth day after it shall
    21  have become a law.