§ 6-1-722 — Gift certificates - validity - exemptions - definitions

(1) (a) As used
in this section, gift card means a prefunded tangible or electronic record of a
specific monetary value evidencing an issuer's agreement to provide goods,
services, credit, money, or anything of value. A gift card includes, but is not
limited to, a tangible card; electronic card; stored-value card; or certificate or
similar instrument, card, or tangible record, all of which contain a microprocessor
chip, magnetic chip, or other means for the storage of information and for which the
value is decremented upon each use. A gift card does not include a prefunded
tangible or electronic record issued by, or on behalf of, any government agency; a
gift certificate that is issued only on paper; a prepaid telecommunications or
technology card; a card or certificate issued to a consumer pursuant to an awards,
loyalty, or promotional program for which no money or other item of monetary value
was exchanged; or a card that is donated or sold below face value at a volume
discount to an employer or charitable organization for fundraising purposes.

(b) This section shall not apply to gift cards that are usable with multiple
sellers of goods or services. This exception shall not apply to a gift card usable only
with affiliated sellers of goods or services.

(2) On and after August 11, 2010, the issuer shall redeem the remaining value
of a gift card for cash if the amount remaining is five dollars or less on request of
the holder.

(3) It is unlawful for any person or entity to sell to a purchaser a gift card
that contains a service fee, a dormancy fee, an inactivity fee, a maintenance fee, or
any other type of fee.

(4) A violation of this section shall be deemed a deceptive trade practice as
provided in section 6-1-105 (1)(ccc).

Legislative History

Source: L. 2010: Entire section added, (SB 10-155), ch. 180, p. 647, � 1, effective August 11.