94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4205


 
Introduced 11/17/2005, by Rep. Jack D. Franks
 
SYNOPSIS AS INTRODUCED:
 		














815 ILCS 505/2SS









    Amends the Consumer Fraud and Deceptive Business Practices Act.    Provides that no person shall sell a gift certificate that is subject to an expiration date or a fee.  Provides that the face value of a gift certificate may not be reduced in value and the holder of a gift certificate may not be penalized in any way for non-use or untimely redemption of the gift certificate. Deletes language requiring that a gift certificate subject to a fee or expiration date contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date or whether there is a fee.    Makes other changes.  
















LRB094 14229 LCT 50204 b

















 


 


A BILL FOR









 











HB4205

LRB094 14229 LCT 50204 b






1
    AN ACT concerning business.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Consumer Fraud and Deceptive Business 
5
Practices Act is amended  by changing and renumbering Section 
6
2QQ, as added by  Public Act 93-945, as follows:
 


7
    (815 ILCS 505/2SS)


8
    Sec. 2SS
2QQ. Gift certificates.
9
    (a)  "Gift certificate" means a record evidencing a promise, 
10
made for consideration, by the seller or issuer of the record 
11
that goods or services will be provided to the holder of the 
12
record for the value shown in the record and includes, but is 
13
not limited to, a record that contains a microprocessor chip, 
14
magnetic stripe or other means for the storage of information 
15
that is prefunded and for which the value is decremented upon 
16
each use, a gift card, an electronic gift card, stored-value 
17
card or certificate, a store card or a similar record or card.  
18
For purposes of this Act, the term "gift certificate" does not 
19
include any of the following:
20
        (i)  prepaid telecommunications and technology cards 
21
    including, but not limited
to, prepaid telephone calling 
22
    cards, prepaid technical support cards, and prepaid 
23
    Internet disks that are distributed to or purchased by a 
24
    consumer;
25
        (ii)  prepaid telecommunications and technology cards 
26
    including, but not
limited to, prepaid telephone calling 
27
    cards, prepaid technical support cards, and prepaid 
28
    Internet disks that are provided to a consumer pursuant to 
29
    any award, loyalty, or promotion program without any money 
30
    or other thing of value being given in exchange for the 
31
    card; or
32
        (iii)  any gift certificate usable with multiple 
 


 






HB4205
- 2 -
LRB094 14229 LCT 50204 b




1
    sellers of goods or services.
2
    (b)   No person shall sell a gift certificate that is subject 
3
to: (1) an expiration date; or (2) a fee.
Any gift certificate 
4
subject to a fee must contain a statement clearly and 
5
conspicuously printed on the gift certificate stating whether 
6
there is a fee, the amount of the fee, how often the fee will 
7
occur, that the fee is triggered by inactivity of the gift 
8
certificate, and at what point the fee will be charged. The 
9
statement may appear on the front or back of the gift 
10
certificate in a location where it is visible to any purchaser 
11
prior to the purchase.
12
    (c) The face value of a gift certificate may not be reduced 
13
in value and the holder of a gift certificate may not be 
14
penalized in any way for non-use or untimely redemption of the 
15
gift certificate.
Any gift certificate subject to an expiration 
16
date must contain a statement clearly and conspicuously printed 
17
on the gift certificate stating the expiration date. The 
18
statement may appear on the front or back of the gift 
19
certificate in a location where it is visible to any purchaser 
20
prior to the purchase.
21
    (d) (Blank).
Subsection (c) does not apply to any gift 
22
certificate that contains a toll free phone number and a 
23
statement clearly and conspicuously printed on the gift 
24
certificate stating that holders can call the toll free number 
25
to find out the balance on the gift certificate, if applicable, 
26
and the expiration date. The toll free number and statement may 
27
appear on the front or back of the gift certificate in a 
28
location where it is visible to any purchaser prior to the 
29
purchase.
30
    (e)  This Section does not apply to any of the following 
31
gift certificates:
32
        (i)  Gift certificates that are distributed by the 
33
    issuer to a consumer pursuant to an
awards, loyalty, or 
34
    promotional program without any money or thing of value 
35
    being given in exchange for the gift certificate by the 
36
    consumer.
 


 






HB4205
- 3 -
LRB094 14229 LCT 50204 b




1
        (ii)  Gift certificates that are sold below face value 
2
    at a volume discount to employers or to nonprofit and 
3
    charitable organizations for fundraising purposes if the 
4
    expiration date on those gift certificates is not more than 
5
    30 days after the date of sale.
6
        (iii) Gift certificates that are issued for a food 
7
    product.

8
(Source: P.A. 93-945, eff. 1-1-05; revised 11-10-04.)