94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2196


 
Introduced 1/11/2006, by Sen. Martin A. Sandoval
 
SYNOPSIS AS INTRODUCED:
 		














815 ILCS 505/2SS









    Amends the Consumer Fraud and Deceptive Business Practices Act.    Provides that no person shall sell a gift certificate that is subject to an expiration date or a fee.  Provides that the face value of a gift certificate may not be reduced in value and the holder of a gift certificate may not be penalized in any way for non-use or untimely redemption of the gift certificate. Deletes language requiring that a gift certificate subject to a fee or expiration date contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date or whether there is a fee.    Makes other changes.  
















LRB094 15788 LCT 51004 b

















 


 


A BILL FOR









 











SB2196

LRB094 15788 LCT 51004 b






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    AN ACT concerning business.

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


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


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    (815 ILCS 505/2SS)


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    Sec. 2SS
2QQ. Gift certificates.
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    (a)  "Gift certificate" means a record evidencing a promise, 
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made for consideration, by the seller or issuer of the record 
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that goods or services will be provided to the holder of the 
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record for the value shown in the record and includes, but is 
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not limited to, a record that contains a microprocessor chip, 
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magnetic stripe or other means for the storage of information 
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that is prefunded and for which the value is decremented upon 
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each use, a gift card, an electronic gift card, stored-value 
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card or certificate, a store card or a similar record or card.  
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For purposes of this Act, the term "gift certificate" does not 
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include any of the following:
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        (i)  prepaid telecommunications and technology cards 
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    including, but not limited
to, prepaid telephone calling 
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    cards, prepaid technical support cards, and prepaid 
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    Internet disks that are distributed to or purchased by a 
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    consumer;
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        (ii)  prepaid telecommunications and technology cards 
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    including, but not
limited to, prepaid telephone calling 
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    cards, prepaid technical support cards, and prepaid 
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    Internet disks that are provided to a consumer pursuant to 
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    any award, loyalty, or promotion program without any money 
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    or other thing of value being given in exchange for the 
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    card; or
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        (iii)  any gift certificate usable with multiple 
 


 






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    sellers of goods or services.
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    (b)   No person shall sell a gift certificate that is subject 
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to: (1) an expiration date; or (2) a fee.
Any gift certificate 
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subject to a fee must contain a statement clearly and 
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conspicuously printed on the gift certificate stating whether 
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there is a fee, the amount of the fee, how often the fee will 
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occur, that the fee is triggered by inactivity of the gift 
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certificate, and at what point the fee will be charged. The 
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statement may appear on the front or back of the gift 
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certificate in a location where it is visible to any purchaser 
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prior to the purchase.
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    (c) The face value of a gift certificate may not be reduced 
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in value and the holder of a gift certificate may not be 
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penalized in any way for non-use or untimely redemption of the 
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gift certificate.
Any gift certificate subject to an expiration 
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date must contain a statement clearly and conspicuously printed 
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on the gift certificate stating the expiration date. The 
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statement may appear on the front or back of the gift 
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certificate in a location where it is visible to any purchaser 
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prior to the purchase.
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    (d) (Blank).
Subsection (c) does not apply to any gift 
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certificate that contains a toll free phone number and a 
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statement clearly and conspicuously printed on the gift 
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certificate stating that holders can call the toll free number 
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to find out the balance on the gift certificate, if applicable, 
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and the expiration date. The toll free number and statement may 
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appear on the front or back of the gift certificate in a 
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location where it is visible to any purchaser prior to the 
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purchase.
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    (e)  This Section does not apply to any of the following 
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gift certificates:
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        (i)  Gift certificates that are distributed by the 
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    issuer to a consumer pursuant to an
awards, loyalty, or 
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    promotional program without any money or thing of value 
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    being given in exchange for the gift certificate by the 
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    consumer.
 


 






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

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