Consumer Protection Committee

Filed: 4/27/2004

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2901

2     AMENDMENT NO. ______. Amend Senate Bill 2901 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Uniform Disposition of Unclaimed Property
5 Act is amended by changing Section 10.6 as follows:
 
6     (765 ILCS 1025/10.6)
7     Sec. 10.6. Gift certificates and gift cards.
8     (a) This Act applies to a gift certificate or gift card
9 only if:
10         (i) the gift certificate or gift card contains or has
11 language indicating there is an expiration date, or
12 expiration period or language indicating that there is any
13 type of post-sale charge or fee including but not limited
14 to service charges, dormancy fees, account maintenance
15 fees, cash-out fees, replacement card fees, and activation
16 or reactivation charges; and
17         (ii) none of the exceptions in this Section apply.
18     (b) This Act does not apply to a gift certificate or gift
19 card that contains or has language indicating that there is an
20 expiration date or expiration period, or any type of post-sale
21 charge or fee including but not limited to service charges,
22 dormancy fees, account maintenance fees, cash-out fees,
23 replacement card fees, and activation or reactivation charges
24 if:

 

 

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1         (i) the gift certificate or gift card was issued before
2 the effective date of this amendatory Act of the 93rd 92nd
3 General Assembly; and
4         (ii) it is the policy and practice of the issuer of the
5 gift certificate or gift card to honor the gift certificate
6 or gift card after its expiration date or the end of its
7 expiration period and it is the policy and practice of the
8 issuer of the gift certificate or gift card to eliminate
9 all post-sale charges and fees, and the issuer posts
10 written notice of the policy and practice at locations at
11 which the issuer sells gift certificates or gift cards. The
12 written notice shall be an original or a copy of a notice
13 that the State Treasurer shall produce and provide to
14 issuers free of charge.
15     (c) Nothing in this Section applies to a gift certificate
16 or gift card if the value of the gift certificate or gift card
17 was reported and remitted under this Act before the effective
18 date of this amendatory Act of the 93rd 92nd General Assembly.
19 (Source: P.A. 92-487, eff. 8-23-01.)
 
20     Section 10. The Consumer Fraud and Deceptive Business
21 Practices Act is amended by adding Section 2QQ as follows:
 
22     (815 ILCS 505/2QQ new)
23     Sec. 2QQ. Gift certificates.
24     (a) "Gift certificate" means a record evidencing a promise,
25 made for consideration, by the seller or issuer of the record
26 that goods or services will be provided to the holder of the
27 record for the value shown in the record and includes, but is
28 not limited to, a record that contains a microprocessor chip,
29 magnetic stripe or other means for the storage of information
30 that is prefunded and for which the value is decremented upon
31 each use, a gift card, an electronic gift card, stored-value
32 card or certificate, a store card or a similar record or card.

 

 

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1 For purposes of this Act, the term, "gift certificate" does not
2 include any of the following:
3         (i) prepaid telecommunications and technology cards
4 including, but not limited to, prepaid telephone calling
5 cards, prepaid technical support cards, and prepaid
6 Internet disks that are distributed to or purchased by a
7 consumer;
8         (ii) prepaid telecommunications and technology cards
9 including, but not limited to, prepaid telephone calling
10 cards, prepaid technical support cards, and prepaid
11 Internet disks that are provided to a consumer pursuant to
12 any award, loyalty, or promotion program without any money
13 or other thing of value being given in exchange for the
14 card; or
15         (iii) any gift certificate usable with multiple
16 sellers of goods or services.
17     (b) Any gift certificate subject to a fee must contain a
18 statement clearly and conspicuously printed on the gift
19 certificate stating whether there is a fee, the amount of the
20 fee, how often the fee will occur, that the fee is triggered by
21 inactivity of the gift certificate, and at what point the fee
22 will be charged. The statement may appear on the front or back
23 of the gift certificate in a location where it is visible to
24 any purchaser prior to the purchase.
25     (c) Any gift certificate subject to an expiration date must
26 contain a statement clearly and conspicuously printed on the
27 gift certificate stating the expiration date. The statement may
28 appear on the front or back of the gift certificate in a
29 location where it is visible to any purchaser prior to the
30 purchase.
31     (d) Subsection (c) does not apply to any gift certificate
32 that contain a toll free phone number and a statement clearly
33 and conspicuously printed on the gift certificate stating that
34 holders can call the toll free number to find out the balance

 

 

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1 on the gift certificate, if applicable, and the expiration
2 date. The toll free number and statement may appear on the
3 front or back of the gift certificate in a location where it is
4 visible to any purchaser prior to the purchase.
5     (e) This Section does not apply to any of the following
6 gift certificates:
7         (i) Gift certificates that are distributed by the
8 issuer to a consumer pursuant to an awards, loyalty, or
9 promotional program without any money or thing of value
10 being given in exchange for the gift certificate by the
11 consumer.
12         (ii) Gift certificates that are sold below face value
13 at a volume discount to employers or to nonprofit and
14 charitable organizations for fundraising purposes if the
15 expiration date on those gift certificates is not more than
16 30 days after the date of sale.
17         (iii) Gift certificates that are issued for a food
18 product.".