Bill Text: MI HB5895 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Consumer protection; unfair trade practices; certain prepaid discount cards or programs; regulate as gift cards. Amends sec. 3e of 1976 PA 331 (MCL 445.903e).

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-09-21 - Bill Electronically Reproduced 09/20/2016 [HB5895 Detail]

Download: Michigan-2015-HB5895-Introduced.html

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HOUSE BILL No. 5895

 

 

September 20, 2016, Introduced by Reps. Sarah Roberts, Wittenberg, Greig and Pagan and referred to the Committee on Commerce and Trade.

 

     A bill to amend 1976 PA 331, entitled

 

"Michigan consumer protection act,"

 

by amending section 3e (MCL 445.903e), as added by 2008 PA 210.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3e. (1) A person engaged in the retail sale of goods or

 

services shall not do any of the following in connection with a

 

gift certificate issued for retail goods or services:

 

     (a) Refuse to accept a gift certificate in payment for goods

 

or services used or bought for use primarily for personal, family,

 

or household purposes, including, but not limited to, goods or

 

services advertised on sale or pursuant to a liquidation or

 

closeout. This subdivision does not apply if the gift certificate

 

has an expiration date that does not violate section 3g and it is

 

presented for redemption after that expiration date.

 

     (b) In any manner restrict the holder of a gift certificate

 

from using the gift certificate in a manner consistent with the

 

stated terms and conditions of the gift certificate.

 

     (c) Alter any term or condition of a gift certificate after it

 

is issued.

 

     (d) If a gift certificate has any terms or conditions, fail to

 

disclose the terms and conditions to a prospective purchaser by

 

doing any of the following:

 

     (i) If a gift certificate is offered for sale by mail,

 

conspicuously stating in the offer that "terms and conditions are

 

applied to gift certificates and gift cards".

 

     (ii) If a gift certificate is offered for sale by electronic,

 

computer, or telephonic means, including a statement that "terms

 

and conditions are applied to gift certificates or gift cards"

 

before the prospective purchaser is able to purchase the gift

 

certificate or conspicuously including that statement in the

 

electronic message offering the gift certificate for purchase.

 

     (e) If a gift certificate has any terms or conditions, fail to

 

disclose the terms and conditions by conspicuously printing the

 

terms and conditions on 1 of the following:

 

     (i) The gift certificate.

 

     (ii) The envelope or packaging containing the gift

 

certificate, if a toll-free telephone number to access the terms

 

and conditions is printed on the gift certificate.

 

     (iii) A separate printed document delivered to the purchaser,

 

if a toll-free telephone number to access the terms and conditions

 

is printed on the gift certificate.

 

     (f) If a gift certificate has any terms or conditions, fail to

include in any advertisement or promotion for the gift certificate

 

a notice that states that "terms and conditions are applied to gift

 

certificates and gift cards".

 

     (g) If the value of the gift certificate or remaining balance

 

of the gift certificate is less than the purchase price of goods or

 

services, refuse to accept the gift certificate and apply it to the

 

purchase price of the goods or services.

 

     (2) As used in this section and sections 3f and 3g:

 

     (a) "Person engaged in the retail sale of goods" includes a

 

person conducting a closeout, liquidation, or going-out-of-business

 

sale on behalf of the person engaged in the retail sale of goods or

 

that person's creditors.

 

     (b) Subject to subsection (3), "gift certificate" means a any

 

of the following:

 

     (i) A written promise or a gift card or other electronic

 

payment device that meets all of the following:

 

     (A) (i) Is usable at a single retailer, is usable at an

 

affiliated group of retailers that share the same name, mark, or

 

logo, or is usable at multiple, unaffiliated retailers or service

 

providers.

 

     (B) (ii) Is issued in a specified amount.

 

     (C) (iii) May or may not be increased in value or reloaded.

 

     (D) (iv) Is purchased or loaded on a prepaid basis for the

 

future purchase or delivery of goods or services.

 

     (E) (v) Is honored upon presentation.

 

     (ii) A prepaid discount card or program used to purchase

 

identified goods, services, or classes at a price or percentage

below the normal and customary price.

 

     (c) "Terms and conditions" includes, but is not limited to, an

 

expiration date or a fee charged for the replacement of a gift

 

certificate that is lost, stolen, or destroyed.

 

     (d) "Use" of a gift certificate includes making purchases with

 

or adding value to the gift certificate.

 

     (3) As used in this section, "gift certificate" does not

 

include any of the following:

 

     (a) A general use, prepaid card or other electronic payment

 

device that is issued or sponsored by a financial institution in a

 

predetermined amount and is usable at multiple, unaffiliated

 

retailers or at automated teller machines. As used in this

 

subdivision, "financial institution" means a bank, bank and trust,

 

national bank, savings bank, savings and loan association, credit

 

union, or money transmitter organized under the laws of this state,

 

another state, the District of Columbia, the United States, or any

 

territory or protectorate of the United States and their respective

 

subsidiaries, affiliates, or holding companies.

 

     (b) An electronic payment device linked to a deposit account.

 

     (c) A prepaid telephone calling card regulated under state or

 

federal law or a card used in connection with prepaid wireless

 

telephone service.

 

     (d) An electronic payment device used to access an account

 

from which an individual may pay medical expenses, health care

 

expenses, dependent care expenses, or similar expenses on a pretax

 

basis under the internal revenue code, 26 USC 1 to 1789, or

 

regulations adopted pursuant to the internal revenue code.

     (e) A prepaid discount card or program used to purchase

 

identified goods or services at a price or percentage below the

 

normal and customary price, if any expiration date of the prepaid

 

discount card or program is clearly and conspicuously disclosed.

 

     (e) (f) A payroll card or other electronic payment device

 

linked to a deposit account and given in exchange for goods or

 

services rendered.

 

     (f) (g) A gift certificate sold below face value or at a

 

volume discount to an employee, to a nonprofit or charitable

 

organization, or to an educational institution for fund-raising

 

purposes.

 

     (g) (h) A gift certificate distributed to a consumer or

 

employee pursuant to an awards, rewards, loyalty, or promotional

 

program, if the consumer or employee is not required to give

 

consideration for the gift certificate.

 

     (h) (i) An electronic credit voucher issued by a person that

 

holds a certificate issued under chapter 411 of title 49 of the

 

United States Code, 49 USC 41101 to 41113, or a permit issued under

 

chapter 413 of title 49 of the United States Code, 49 USC 41301 to

 

41313.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.