Senate File 266 introduces a new section to Iowa law addressing crimes related to gift cards, defining key terms such as "cardholder," "card issuer," "gift card," "gift card redemption information," and "gift card seller." The bill establishes that acquiring or retaining possession of a gift card or its redemption information without consent, altering or tampering with a gift card, or devising schemes to obtain gift cards through fraudulent means constitutes theft, forgery, or fraudulent practices, with penalties ranging from aggravated misdemeanors to class C felonies based on the value involved.

The legislation specifies that the value of retail merchandise received in violation of this section can be aggregated over a six-month period for charging purposes. This comprehensive approach aims to deter fraudulent activities involving gift cards by imposing significant penalties for various offenses, thereby enhancing consumer protection and addressing the growing concerns surrounding gift card fraud.