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 or service fees on gift certificates, to limit the redemption time, or to set an expiration date. 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 exempts certain types of gift certificates from these regulations, such as those distributed through awards or loyalty programs without monetary exchange, prepaid wireless telephone services, and cards issued by financial institutions or third-party issuers that comply with specific guidelines.

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. If the institution cannot 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 designed to protect consumers and ensure fair practices in the sale and use of gift certificates. It will take effect upon passage.

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