Sponsored by:
Assemblywoman BARBARA MCCANN STAMATO
District 31 (Hudson)
Assemblyman WILLIAM B. SAMPSON, IV
District 31 (Hudson)
SYNOPSIS
Requires that notice concerning gift card fraud be posted by retail mercantile establishments that sell gift cards to consumers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the sale of gift cards and amending P.L.2021, c.431.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2021, c.431 (C.56:8-110.1) is amended to read as follows:
1. a. Every retail mercantile establishment in this State that displays gift cards for sale shall:
(1) train employees on how to identify and respond to gift card fraud. A retail mercantile establishment shall conduct the training in accordance with guidelines issued pursuant to section 2 of [this act] P.L.2021, c.110 (C.56:8-110.2); and
(2) post a notice, in a conspicuous manner at or near the physical location where gift cards are displayed for sale in the establishment, to caution consumers about gift card fraud and to instruct consumers on steps to take if fraud is suspected.
b. A retail mercantile establishment that violates the provisions of this section shall be subject to a civil penalty of $1,000, which may be collected and enforced by the Director of the Division of Consumer Affairs in the Department of Law and Public Safety in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court shall have jurisdiction of proceedings for the enforcement of the penalty provided by this section.
A violation of this section shall not be considered an unlawful practice in violation of P.L.1960, c.39 (C.56:8-1 et seq.).
c. As used in this section:
"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.
"Merchandise" means any objects, wares, goods, commodities, services, or anything offered, directly or indirectly, to the public for sale.
"Retail mercantile establishment" means any place of business where merchandise is exposed or offered for sale at retail to members of the consuming public.
(cf: P.L.2021, c.431, s.1)
2. This act shall take
effect six months after the date of enactment.
STATEMENT
This bill requires retail mercantile establishments that sell gift cards to display a notice, in a conspicuous manner at or near the physical location where gift cards are displayed for sale in the establishment, to caution consumers about gift card fraud. The notice is to also instruct consumers on steps to take if fraud is suspected. Businesses that sell gift cards can help protect their customers from fraud by placing these notices to raise awareness about the risks of using the gift cards in response to a fraudulent request.