HB4111 94TH GENERAL ASSEMBLY

LRB094 13558 RXD 48422 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4111

Introduced 09/20/05, by Rep. Eileen Lyons

SYNOPSIS AS INTRODUCED:

815 ILCS 505/2SS

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person shall: (1) refuse to honor a valid gift certificate; (2) reduce the value of a gift certificate, except when the holder of a gift certificate partially redeems the gift certificate as payment for goods or services; or (3) sell a gift certificate that is subject to an expiration date. Provides that upon the presentation of a gift certificate, the issuer shall disclose to the holder the date on which the gift certificate was issued and the remaining balance of the gift certificate. Deletes language requiring a gift certificate subject to an expiration date to contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date. Makes other changes.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2QQ, as added by Public Act 93-945, as follows:

(815 ILCS 505/2SS)

Sec. 2SS 2QQ. Gift certificates.

(a) "Gift certificate" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the holder of the record for the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card or a similar record or card. For purposes of this Act, the term "gift certificate" does not include any of the following:

(i) prepaid telecommunications and technology cards including, but not limited to, prepaid telephone calling cards, prepaid technical support cards, and prepaid Internet disks that are distributed to or purchased by a consumer;

(ii) prepaid telecommunications and technology cards including, but not limited to, prepaid telephone calling cards, prepaid technical support cards, and prepaid Internet disks that are provided to a consumer pursuant to any award, loyalty, or promotion program without any money or other thing of value being given in exchange for the card; or

(iii) any gift certificate usable with multiple sellers of goods or services.

(b) Any gift certificate subject to a fee must contain a statement clearly and conspicuously printed on the gift certificate stating whether there is a fee, the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift certificate, and at what point the fee will be charged. The statement may appear on the front or back of the gift certificate in a location where it is visible to any purchaser prior to the purchase.

(b-5) No person shall refuse to honor a valid gift certificate. Upon the presentation of a gift certificate, the issuer shall disclose to the holder, the date on which the gift certificate was issued and the remaining balance of the gift certificate.

(b-10) No person shall reduce the value of a gift certificate, except that when the holder of a gift certificate partially redeems the gift certificate as payment for goods or services, the issuer that provides the goods or services may subtract the sale of the goods or services. If the holder of a gift certificate partially redeems the gift certificate, and the resulting balance is less than $5, the issuer shall, at the holder's request, refund to the holder the balance of the gift certificate in cash.

(c) No person shall sell a gift certificate that is subject to an expiration date. An expiration date that purports to apply to a gift certificate is void and unenforceable. Any gift certificate subject to an expiration date must contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date. The statement may appear on the front or back of the gift certificate in a location where it is visible to any purchaser prior to the purchase.

(d) (Blank). Subsection (c) does not apply to any gift certificate that contains a toll free phone number and a statement clearly and conspicuously printed on the gift certificate stating that holders can call the toll free number to find out the balance on the gift certificate, if applicable, and the expiration date. The toll free number and statement may appear on the front or back of the gift certificate in a location where it is visible to any purchaser prior to the purchase.

(e) This Section does not apply to any of the following gift certificates:

(i) Gift certificates that are distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or thing of value being given in exchange for the gift certificate by the consumer.

(ii) Gift certificates that are sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale.

(iii) Gift certificates that are issued for a food product.

(Source: P.A. 93-945, eff. 1-1-05; revised 11-10-04.)