The bill amends Section 6-13-12 of the General Laws in Chapter 6-13 entitled "Unfair Sales Practices" to update the definition and regulations surrounding the sale and use of gift certificates. The bill specifies that it is unlawful to charge surcharges, service or maintenance fees on gift certificates, or to set expiration dates for them. Retailers are required to keep detailed records of each gift certificate sold, including the date of sale, value, identification number, and state of sale. For gift certificates exceeding $50, a written and numbered receipt must be provided to the purchaser. Violations of these provisions can result in a fine of up to $200. The bill also states that unused portions of redeemed gift certificates must be returned to the consumer, either as a new gift certificate or in cash if the balance is less than $1.00. The bill exempts certain types of gift certificates from these regulations, including those distributed as part of awards, loyalty, or promotional programs, prepaid wireless telephone services, and cards issued by financial institutions or usable at multiple merchants.

The bill introduces new language that allows state-chartered institutions of higher education to refund any unused portion of gift certificates upon an individual's separation from the institution or to apply such funds against the individual's account at the institution. If the institution is unable to complete a refund or application, the funds are considered abandoned after two years and must be escheated to the office of the general treasurer's unclaimed property fund. The bill is set to take effect upon passage, and it specifically aims to regulate the practices related to gift certificates issued by state-chartered institutions of higher education, ensuring that these funds can be refunded or properly applied and handled if left unused.

Statutes affected:
7509  SUB A: 6-13-12
7509: 6-13-12