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.