This bill amends the existing law on fraudulent retail transactions by introducing new definitions and expanding the scope of violative conduct related to gift cards. It adds several definitions, including "cardholder," "card issuer," "closed-loop gift card," "open-loop gift card," "gift card seller," and "gift card redemption information." The bill specifies that a person can be charged with theft if they acquire or retain possession of a gift card or its redemption information without consent, and it establishes penalties for various fraudulent activities involving gift cards, including altering or tampering with them and devising schemes to obtain them through false pretenses.

Additionally, the bill modifies the penalties for fraudulent retail transactions, categorizing offenses based on the value of goods or services obtained unlawfully. It stipulates that if the total value exceeds $1,500 within a six-month period, the offense is classified as a class A felony; if it exceeds $1,000, it is a class B felony; and all other violations are misdemeanors. The bill also sets an effective date of January 1, 2026, for these changes. Overall, the legislation aims to strengthen the legal framework surrounding fraudulent retail transactions, particularly those involving gift cards, to better protect consumers and merchants.

Statutes affected:
Introduced: 637:10-b