CHAPTER 743cc

GIFT CERTIFICATES AND PREPAID CARDS

Table of Contents

Sec. 42-460. Gift certificate subject to expiration date prohibited. Honoring gift certificate reported as abandoned property.

Sec. 42-460a. General-use prepaid cards. Restrictions re expiration date. Disclosures.

Secs. 42-461 to 42-469. Reserved


Sec. 42-460. Gift certificate subject to expiration date prohibited. Honoring gift certificate reported as abandoned property. (a) No person may sell or issue a gift certificate, as defined in section 3-56a, that is subject to an expiration date. No gift certificate or any agreement with respect to such gift certificate may contain language suggesting that an expiration date may apply to the gift certificate.

(b) Nothing in this section shall be construed to prevent a holder from honoring a gift certificate, the unredeemed value of which has been reported to the Treasurer pursuant to part III of chapter 32, and thereafter seeking reimbursement from the Treasurer.

(June 30 Sp. Sess. P.A. 03-1, S. 84; P.A. 05-189, S. 2.)

History: June 30 Sp. Sess. P.A. 03-1 effective August 16, 2003; P.A. 05-189 amended Subsec. (a) to refer to the definition of gift certificate in Sec. 3-56a, deleted former Subsec. (b) re obtaining the address of the owner of gift certificate and redesignated existing Subsec. (c) as Subsec. (b).

Sec. 42-460a. General-use prepaid cards. Restrictions re expiration date. Disclosures. (a) As used in this section, “general-use prepaid card” has the same meaning given to that term in 12 CFR 205.20(a)(3), as from time to time amended.

(b) A general-use prepaid card shall not include an expiration date relative to the underlying funds that are redeemable through the use of the applicable card, code or device. Notwithstanding the provisions of this subsection, a general-use prepaid card may include an expiration date with regard to such card, code or device, provided: (1) The following disclosures are made, in writing, on such card, code or device: (A) That such card, code or device expires, but that the underlying funds do not expire and that the consumer may contact the issuer for a replacement card, code or device; and (B) a toll-free telephone number and an Internet web site address, if one is maintained, that a holder of a general-use prepaid card may use to obtain a replacement card, code or device after such card, code or device expires; (2) no fee or charge is imposed on such holder for replacing the card, code or device or for providing such holder with the remaining balance in some other manner, provided the card, code or device has not been lost or stolen; and (3) the seller of the card, code or device has established policies and procedures to provide consumers a reasonable opportunity to purchase a card, code or device that has not less than five years remaining until the card, code or device expires.

(c) For purposes of complying with the disclosure requirements of subdivision (1) of subsection (b) of this section, (1) the issuer of the general-use prepaid card may provide disclosures that are consistent with the applicable provisions of 12 CFR 205.20(e), as from time to time amended, and (2) such issuer shall make the disclosure required under subparagraph (A) of said subdivision (1) with equal prominence and in close proximity to the expiration date on the applicable card, code or device.

(P.A. 11-201, S. 9.)

Secs. 42-461 to 42-469. Reserved for future use.