97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0252

 

Introduced 01/25/11, by Rep. Rosemary Mulligan

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 505/2SS

    Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the holder of a gift certificate issued on or after January 1, 2012 that has a balance of less than $10 must be given the option of receiving that balance in cash. Effective January 1, 2012.


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A BILL FOR

 

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1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2SS as follows:
 
6    (815 ILCS 505/2SS)
7    Sec. 2SS. Gift certificates.
8    (a) "Gift certificate" means a record evidencing a promise,
9made for consideration, by the seller or issuer of the record
10that goods or services will be provided to the holder of the
11record for the value shown in the record and includes, but is
12not limited to, a record that contains a microprocessor chip,
13magnetic stripe or other means for the storage of information
14that is prefunded and for which the value is decremented upon
15each use, a gift card, an electronic gift card, stored-value
16card or certificate, a store card or a similar record or card.
17For purposes of this Act, the term "gift certificate" does not
18include any of the following:
19        (i) prepaid telecommunications and technology cards
20    including, but not limited to, prepaid telephone calling
21    cards, prepaid technical support cards, and prepaid
22    Internet disks that are distributed to or purchased by a
23    consumer;

 

 

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1        (ii) prepaid telecommunications and technology cards
2    including, but not limited to, prepaid telephone calling
3    cards, prepaid technical support cards, and prepaid
4    Internet disks that are provided to a consumer pursuant to
5    any award, loyalty, or promotion program without any money
6    or other thing of value being given in exchange for the
7    card; or
8        (iii) any gift certificate usable with multiple
9    sellers of goods or services.
10    (b) On or after January 1, 2008, no person shall sell a
11gift certificate that is subject to: (1) an expiration date
12earlier than 5 years after the date of issuance; or (2) a
13post-purchase fee. Any gift certificate issued prior to January
141, 2008 that is subject to a fee must contain a statement
15clearly and conspicuously printed on the gift certificate
16stating whether there is a fee, the amount of the fee, how
17often the fee will occur, that the fee is triggered by
18inactivity of the gift certificate, and at what point the fee
19will be charged. The statement may appear on the front or back
20of the gift certificate in a location where it is visible to
21any purchaser prior to the purchase.
22    (c) The face value of a gift certificate issued on or after
23January 1, 2008 may not be reduced in value and the holder of a
24gift certificate issued after January 1, 2008 may not be
25penalized in any way for non-use or untimely redemption of the
26gift certificate. Any gift certificate issued prior to January

 

 

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11, 2008 that is subject to an expiration date must contain a
2statement clearly and conspicuously printed on the gift
3certificate stating the expiration date. The statement may
4appear on the front or back of the gift certificate in a
5location where it is visible to any purchaser prior to the
6purchase.
7    (d) Subsection (c) does not apply to any gift certificate
8issued prior to January 1, 2008 that contains a toll free phone
9number and a statement clearly and conspicuously printed on the
10gift certificate stating that holders can call the toll free
11number to find out the balance on the gift certificate, if
12applicable, and the expiration date. The toll free number and
13statement may appear on the front or back of the gift
14certificate in a location where it is visible to any purchaser
15prior to the purchase.
16    (e) This Section does not apply to any of the following
17gift certificates:
18        (i) Gift certificates that are distributed by the
19    issuer to a consumer pursuant to an awards, loyalty, or
20    promotional program without any money or thing of value
21    being given in direct exchange or solely for the gift
22    certificate by the consumer.
23        (ii) Gift certificates that are sold below face value
24    at a volume discount to employers or to nonprofit and
25    charitable organizations for fundraising purposes if the
26    expiration date on those gift certificates is not more than

 

 

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1    30 days after the date of sale.
2        (iii) Gift certificates that are issued for a food
3    product.
4    (f) The holder of a gift certificate issued on or after
5January 1, 2012 that has a balance of less than $10 must be
6given the option of receiving that balance in cash.
7(Source: P.A. 95-331, eff. 8-21-07; 95-525, eff. 1-1-08.)
 
8    Section 99. Effective date. This Act takes effect January
91, 2012.