Just in time for the holiday season, new legislation signed by the governor of New York takes on "exploitative" gift card practices by limiting fees and extending expiration dates.
Starting Saturday, any gift cards or certificates purchased in the state are valid for at least nine years from the date of purchase, according to the state's Division of Consumer Protection. That extends the previous rule by four years.
The new law also prohibits fees previously associated with card, including service fees, renewal fees, activation fees, and access fees. The one exception: "A gift card or gift certificate that is redeemable at multiple, unaffiliated merchants or service providers may charge a one-time activation fee, not to exceed $9."
Also, any certificate or gift card with a balance of less than $5 can request the balance in cash.
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“Gift cards offer consumers convenience during the holidays,” said Secretary of State Robert Rodriguez. “Thanks to Governor Hochul, gift cards now have a longer shelf life and recipients are afforded more time to find the perfect gift to treat themselves as their gift giver intended.”
Based on the purchase date, the DCP said consumers have the following protections:
- For cards/certificates purchased between Sept. 21, 2004, and Aug. 21, 2010, there is no law requiring minimum expiration and a monthly inactivity fee may be imposed after 12 months of inactivity.
- Cards/certificates purchased between Aug. 22, 2010, and Dec. 24, 2016, must be good for at least five years and a one-time inactivity fee is allowed after 12 months of inactivity.
- Cards/certificates purchased between Dec. 25, 2016, and Dec. 9, 2022, must also be good for at least five years. A one-time inactivity fee is allowed after 24 months of inactivity, but if the card is presented within three years of its purchase date, the fees must be waived and balance replenished to its value before fees.
- And all cards/certificates purchased after Dec. 10, 2022, are valid for at least nine years and inactivity fees are prohibited.
Additional tips to consider over the holiday shopping season:
- Verify the legitimacy of the seller by research before a purchase.
- Check packaging to ensure security seals are intact.
- Use caution when buying from third parties or online auctions.
- Review terms and conditions before purchasing.
- Watch out for scammers: Government entities and utilities will never demand payment of overdue bills or debt via a gift card.
Any consumers needing additional assistance can call the Consumer Assistance Helpline at 1-800-697-1220 or issue a complaint with the DCP here.
