North Carolina Governor Easley Signs Bill To Protect Gift Card Buyers

New Law Makes Sure Consumers Keep Value Of Cards They Buy And Any Fees Are Disclosed

8/20/2007 -- Raleigh - North Carolina Governor Mike Easley announced today he signed into law Senate Bill 1517: ''An act to require the conspicuous disclosure of any maintenance fees charged for gift cards and to prohibit issuers of gift cards from charging maintenance fees for one year after the date of purchase.'' The new law makes sure gift cards purchased from retailers in North Carolina keep their full value for at least a year and require stores to clearly disclose any fees at the time of purchase.

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''When someone gives, or receives, a gift card from a store, it should be worth the value stated,'' said Easley. ''Hidden fees and penalties are not only unfair to consumers, but bad business. This law will prevent consumers from becoming unwitting cheapskates when they give a gift.''

The law prohibits retailers and others who issue gift cards from charging any maintenance fees for a year following the cards’ purchase date. Failure to disclose any fees or charge maintenance fees within the first year will be considered an unfair trade practice under state law and subject the violator to civil penalties.

The law prohibits retailers and others who issue gift cards from charging any maintenance fees for a year following the cards’ purchase date. Failure to disclose any fees or charge maintenance fees within the first year will be considered an unfair trade practice under state law and subject the violator to civil penalties.

The bill was sponsored by state Sen. Bob Atwater (D-Orange). It passed the state Senate 46-4 and the state House of Representatives 109-0. It goes into effect Dec. 1, 2007.

''This will give consumers some assurance, particularly during the holiday gift-giving season, that their generosity is not subverted by a hidden Scrooge,'' Atwater said.

Source: North Carolina Governor