Bill Text: NJ A3372 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires merchandise credit be clearly identifiable and distinguishable from proof of purchase issued by retailer and applies certain limitations on gift cards to merchandise credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-10-07 - Introduced, Referred to Assembly Consumer Affairs Committee [A3372 Detail]
Download: New_Jersey-2010-A3372-Introduced.html
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Requires merchandise credit be clearly identifiable and distinguishable from proof of purchase issued by retailer and applies certain limitations on gift cards to merchandise credit.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning issuance of merchandise credit, amending P.L.2002, c.14 and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) It shall be an unlawful practice for any retailer to issue merchandise credit for returned items unless the merchandise credit is clearly identifiable and distinguishable from any proof of purchase issued by the retailer in the normal course of business. As used in this section, "merchandise credit" means any credit provided to a consumer, upon the return of a previously purchased item, of a specified amount which may be spent at the retail mercantile establishment in lieu of returning payment in the form in which it was originally made.
2. Section 1 of P.L.2002, c.14 (C.56:8-110) is amended to read as follows:
1. a. A gift certificate or gift card sold after the effective date of [this amendatory act] P.L.2002, c.14 (C.56:8-110 et seq.), or a merchandise credit issued after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall retain full unused value until presented in exchange for merchandise, or shall have any and all conditions and limitations, as permitted in paragraphs (1) through (3) of this subsection, disclosed to the purchaser of the gift certificate or gift card at the time of purchase, or the person to whom a merchandise credit is issued at the time of issuance, as provided in subsection b. of this section.
(1) In no case shall a gift certificate or gift card expire within the 24 months immediately following the date of sale, and in no case shall a merchandise credit expire within the 24 months immediately following the date of issue.
(2) No dormancy fee shall be charged against a gift certificate or a gift card within the 24 months immediately following the date of sale, nor shall one be charged within the 24 months immediately following the most recent activity or transaction in which the certificate or card was used. No dormancy fee shall be charged against a merchandise credit within the 24 months immediately following the date of issue, nor shall one be charged within the 24 months immediately following the most recent activity or transaction in which the merchandise credit was used.
(3) A dormancy fee charged against a gift certificate [or] , gift card, or merchandise credit as permitted by this subsection shall not exceed $2.00 per month.
b. The terms of any expiration date or dormancy fee applicable to a gift certificate [or] , gift card, or merchandise credit, as permitted by subsection a. of this section, shall be disclosed to a consumer by:
(1) written notice of the expiration date or dormancy fee or both printed in at least 10 point font, on the gift certificate [or] , gift card, or merchandise credit, or the sales receipt for the certificate [or] , card, or merchandise credit, or the package for the certificate [or] , card , or merchandise credit; and
(2) written notice, in at least 10 point font, on the gift certificate [or] , gift card, or merchandise credit, or the sales receipt for the certificate [or] , card, or merchandise credit, or the package for the certificate [or] , card, or merchandise credit, of a telephone number which the consumer may call, for information concerning any expiration date or dormancy fee.
c. As used in this section:
"Dormancy fee" means a charge imposed against the unused value of a gift card [or] , gift certificate , or merchandise credit due to inactivity;
"Gift card" means a tangible device, whereon is embedded or encoded in an electronic or other format a value issued in exchange for payment, which promises to provide to the bearer merchandise of equal value to the remaining balance of the device. "Gift card" does not include a prepaid telecommunications or technology card, prepaid bank card or rewards card;
"Gift certificate" means a written promise given in exchange for payment to provide merchandise in a specified amount or of equal value to the bearer of the certificate. "Gift certificate" does not include a prepaid telecommunications or technology card, prepaid bank card or rewards card;
"Merchandise" means and includes any objects, wares, goods, commodities, services or anything offered, directly or indirectly, to the public for sale;
"Merchandise credit" means any credit provided to a consumer, upon the return of a previously purchased item, of a specified amount which may be spent at the retail mercantile establishment in lieu of returning payment in the form in which it was originally made;
"Prepaid bank card" means a general use, prepaid card or other electronic payment device that is issued by a bank or other financial institution, or a licensed money transmitter, in a pre-denominated amount usable at multiple, unaffiliated merchants or at automated teller machines, or both, but shall not include a card issued by a retail merchant;
"Prepaid telecommunications or technology card" includes, but is not limited to: a prepaid telephone calling card; prepaid technical support card; or prepaid Internet disk distributed to or purchased by a consumer; and
"Rewards card" means a card or certificate distributed by the issuer to a consumer pursuant to an awards, loyalty, rewards or promotional program, without any money or other consideration or thing of value by the consumer in exchange for the card or certificate.
(cf: P.L.2005, c.254, s.1)
3. This act shall take effect on the first day of the sixth month following enactment.
STATEMENT
This bill would prohibit stores from issuing merchandise credit for returned merchandise unless the credit is clearly identifiable and distinguishable from any proof of purchase issued by the vendor in the normal course of business. In addition, the bill would subject merchandise credit to dormancy fee and expiration date limitations to which gift cards and gift certifications are already subject.
Recently, certain vendors have issued merchandise credit for items returned under certain circumstances on the same paper as sales receipts. Merchandise credit issued in this form is easily confused as being a receipt and may be inadvertently discarded by consumers.
A retailer who provided merchandise credit not clearly identifiable and distinguishable from proof of purchase would be in violation of the provisions of this bill would constitute a violation of the Consumer Fraud Act. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured party.
