November 20, 2007
LANSING - Governor Jennifer M. Granholm today called for passage of a three-bill package that would strengthen existing consumer protections on gift cards and gift certificates. The legislative package, introduced by Democrats in the House, would prevent retailers from charging inactivity fees or service fees on gift cards and gift certificates, prevent the terms of a gift card or gift certificate from being changed after it is issued, and ensure that gift cards and gift certificates are valid for five full years from the date of issuance. The legislation would also require retailers to accept gift cards and gift certificates during special sales. Granholm praised House Democrats for initiating this consumer protection package.
"This is a way of protecting wallets and making sure that consumers are getting the most from their dollars as we head into this busy shopping season," Granholm said. "Gift cards are a worry-free solution to gift giving that consumers should be able to enjoy freely."
House Bill 4050 amends PA 331 of 1976, the "Michigan Consumer Protection Act" by adding a new Section 3e. This new section would mandate that a retailer cannot do any of the following with respect to the issuance of a gift certificate:
- refuse to accept the certificate during a sale, closeout or liquidation;
- restrict the holder of the certificate from using it in a manner consistent with the stated terms of the certificate;
- alter any term or condition of the certificate after it has been issued;
- if a certificate had any terms, fail to disclose those terms. A retailer must clearly display or disclose the fact that the certificate is subject to terms and conditions. If a certificate is purchased online or over the phone, the fact that the certificate is subject to terms and conditions must be disclosed before the customer is able to purchase the gift certificate.
- fail to properly disclose the terms and conditions of a certificate. A retailer must print the terms and conditions on the gift certificate directly, or on the packaging containing the gift certificate, so long as there is a toll-free number on the card itself that a customer can call to get the terms and conditions if they so choose.
- fail to mention that a gift certificate subject to terms and conditions is, in fact, subject to those terms when advertising or promoting the certificate;
- where the purchase is greater than the balance remaining on the certificate, refuse to accept the gift certificate as a portion of the payment.
House Bill 4317 amends PA 331 of 1976, the "Michigan Consumer Protection Act" by amending section 3 and by adding section 3f that states:
- A retailer may not charge an inactivity fee or other service fee to the consumer for using or possessing a gift certificate.
House Bill 4680 amends PA 331 of 1976, the "Michigan Consumer Protection Act" by adding section 3g.
- A retailer cannot sell a gift certificate that expires less than five years after it is issued.
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