New Consumer Protections For Gift Card Buyers Championed By Mayer

YONKERS, NY — It's always better to give than receive, and this year, givers can rest easy knowing that those on their nice list who got gift certificates to favorite haunts will have some important added legal protections.

Senator Shelley Mayer and Assemblyman Nader Sayegh were joined by the Yonkers Mayor’s office over the holidays to remind gift givers that their gift card consumer protection bill, which provides important benefits to purchasers and recipients of gift cards, is in full effect.

"I am pleased that my bill to enhance consumer protections when purchasing gift cards has gone into effect, just in time for this holiday season," Mayer said. "Prior to this legislation, people who purchased gift cards frequently faced large fees, expiration dates on cards that occurred shortly after purchase, and the inability to exchange the unused portion of the card balance for cash. But this holiday season, when you purchase a gift card for a friend or loved one, you can know they will be able to enjoy your gift without undue limitations or additional costs. I introduced this bill based on my frustration with the gift card experience, and am so pleased that we were able to make important changes for New York consumers."

The bill which passed in the 2021 legislative session was signed by Gov. Kathy Hochul on December 10, 2021 and went into effect earlier this month.

"I’m pleased that my legislation, passed by the State Assembly and Senate and approved by Governor Hochul protecting consumers is now in effect," Assemblyman Nader Sayegh said."Thanks to the enactment of this legislation, New Yorkers can rest assured that gift cards and gift certificates will not expire, dwindle and diminish in value due to miscellaneous fees. Together, New York State is leading the nation in protecting consumers and ensuring recipients can enjoy the full value of a gift they receive."

The new law strengthens some key consumers protections in New York.

• Prohibiting fees on all gift cards and gift certificates other than limited activation fees which cannot exceed 9 dollars for so called "open loop" cards which can be used anywhere.
• Requiring that gift cards expire no earlier than 9 years after they were issued.
• Allowing consumers to exchange the remaining balances from store-specific gift cards for cash, if the remaining balance is less than $5.

The new protections do not cover promotional gift certificates, which are issued for "promotional purposes." These cards are still permitted to have expiration dates on the underlying funds.

"This legislation is pro consumer as it will extend gift cards beyond the holiday season and allow New Yorkers to benefit without the consequence of inactivity fees," Yonkers Mayor Mike Spano said. "Thank you to Senator Shelley Mayer and Assemblyman Nader Sayegh for helping to protect our shoppers and businesses."