ALBUQUERQUE, N.M., Dec. 1, 2009 — Most Americans have either purchased or received a gift card or certificate. Business owners who issue or sell such cards should prepare to comply with the new federal law and recently proposed regulations which will dictate disclosures and restrict the fees which may be charged in connection with such products and programs.
According to Eric Laurence, () of Lewis and Roca LLP, a prominent southwestern law firm, these new federal regulations “generally expand the need for disclosures, limit fees associated with the cards, and expand the types of gift programs governed.” Proposed federal regulations were released November 16, 2009 and the comment period will close in mid-January 2010. Final regulations will be released sometime thereafter and go into effect by August 2010.
Laurence recommends that businesses potentially affected by the new law review the final regulations when they are released and reminds such businesses that, although most states already have gift card laws governing fees, gift expirations, and adequacy of disclosures, they will become subject to the stricter of the federal and individual state regulations. He also points out that the proposed regulations leave open the question of whether gift cards or certificates issued prior to August 22, 2010 or already in circulation that date will be grandfathered.
Mr. Laurence will be monitoring developments with the gift card and gift certificate regulations. More information on the proposed gift card regulation is available through:
Contact:
Eric Laurence
1-505-764-5448
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