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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GODSHALL, PRESTON, DONATUCCI, GIBBONS, GROVE, MELIO, MOUL, PYLE, REICHLEY AND SIPTROTH, FEBRUARY 2, 2009 |
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| REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 2, 2009 |
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| AN ACT |
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1 | Amending the act of December 17, 1968 (P.L.1224, No.387), |
2 | entitled "An act prohibiting unfair methods of competition |
3 | and unfair or deceptive acts or practices in the conduct of |
4 | any trade or commerce, giving the Attorney General and |
5 | District Attorneys certain powers and duties and providing |
6 | penalties," further providing for definitions. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Section 2(4) of the act of December 17, 1968 |
10 | (P.L.1224, No.387), known as the Unfair Trade Practices and |
11 | Consumer Protection Law, reenacted and amended November 24, 1976 |
12 | (P.L.1166, No.260), is amended by adding subclauses and the |
13 | section is amended by adding a definition to read: |
14 | Section 2. Definitions.--As used in this act. |
15 | * * * |
16 | (4) "Unfair methods of competition" and "unfair or deceptive |
17 | acts or practices" mean any one or more of the following: |
18 | * * * |
19 | (xxii) Selling or offering to sell, by a person engaged in |
20 | the retail sale of goods or services, a gift certificate to a |
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1 | consumer that expires within a period of less than five years. |
2 | (xxiii) Charging, by a person engaged in the retail sale of |
3 | goods or services, an inactivity fee or other service fee for |
4 | the possession or redemption of a gift certificate. For purposes |
5 | of this clause, "service fee" does not include any fee charged |
6 | to or paid by a consumer in connection with the sale of a gift |
7 | certificate, unless the fee is deducted or debited from the face |
8 | value of the gift certificate. |
9 | (xxiv) In the retail sale of goods or services in which the |
10 | purchaser presents for redemption a gift certificate, engaging |
11 | in any of the following: |
12 | (A) Refusing to accept the gift certificate, if the goods or |
13 | services are used or purchased primarily for personal, family or |
14 | household purposes, including, but not limited to, goods or |
15 | services advertised on sale or pursuant to a liquidation or |
16 | closeout. This subclause does not apply if the gift certificate |
17 | has an expiration date that complies with law and is not |
18 | presented for redemption after the expiration date. |
19 | (B) Restricting the holder of the gift certificate from |
20 | using the gift certificate in a manner consistent with the |
21 | stated terms and conditions on the gift certificate. |
22 | (C) Altering any term or condition of the gift certificate |
23 | after it is issued. |
24 | (D) Refusing to redeem the gift certificate and apply it to |
25 | the purchase price of the goods or services if the value of the |
26 | gift certificate or remaining balance of the gift certificate is |
27 | less than the purchase price of the goods or services. |
28 | (xxv) Failing to disclose the terms and conditions of a gift |
29 | certificate to a prospective purchaser of the gift certificate |
30 | by doing any of the following: |
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1 | (A) Failing to include in any advertisement or promotion for |
2 | the gift certificate, whether by mail or electronic, computer or |
3 | telephonic means, a notice stating that terms and conditions are |
4 | applied to the gift certificate. |
5 | (B) Failing to conspicuously print the terms and conditions |
6 | on the gift certificate, the envelope or packaging containing |
7 | the gift certificate or a separate printed document delivered to |
8 | the purchaser of the gift certificate. |
9 | (5) (i) "Gift certificate" means a written promise or a |
10 | gift card or other electronic payment device that meets all of |
11 | the following: |
12 | (A) Is usable at a single retailer, is usable at an |
13 | affiliated group of retailers that share the same name, mark or |
14 | logo or is usable at multiple, unaffiliated retailers or service |
15 | providers. |
16 | (B) Is issued in a specified amount. |
17 | (C) May or may not be increased in value or reloaded. |
18 | (D) Is purchased or loaded on a prepaid basis for the future |
19 | purchase or delivery of goods or services. |
20 | (E) Is designed to be redeemed upon presentation. |
21 | (ii) The term does not include any of the following: |
22 | (A) A general use, prepaid card or other electronic payment |
23 | device that is issued or sponsored by a financial institution in |
24 | a predetermined amount and is usable at multiple, unaffiliated |
25 | retailers or at automated teller machines. "Financial |
26 | institution" means a bank, bank and trust, national bank, |
27 | savings bank, savings and loan association, credit union or |
28 | money transmitter organized under the laws of this Commonwealth, |
29 | another state, the District of Columbia, the United States or |
30 | any territory or protectorate of the United States and their |
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1 | respective subsidiaries, affiliates or holding companies. |
2 | (B) An electronic payment device linked to a deposit |
3 | account. |
4 | (C) A prepaid telephone calling card regulated under Federal |
5 | or State law or a card used in connection with prepaid wireless |
6 | telephone service. |
7 | (D) An electronic payment device used to access an account |
8 | from which an individual may pay medical expenses, health care |
9 | expenses, dependent care expenses or similar expenses on a |
10 | pretax basis under the Internal Revenue Code of 1986 (Public Law |
11 | 99-514, 26 U.S.C. § 1 et seq.). |
12 | (E) A prepaid discount card or program used to purchase |
13 | identified goods or services at a price or percentage below the |
14 | normal and customary price, if any expiration date of the |
15 | prepaid discount card or program is clearly and conspicuously |
16 | disclosed. |
17 | (F) A payroll card or other electronic payment device linked |
18 | to a deposit account and given in exchange for goods or services |
19 | rendered. |
20 | (G) A gift certificate sold below face value or at a volume |
21 | discount to an employe, to a nonprofit or charitable |
22 | organization or to an educational institution for fundraising |
23 | purposes. |
24 | (H) A gift certificate distributed to a consumer or employe |
25 | pursuant to an awards, rewards, loyalty or promotional program, |
26 | if the consumer or employe is not required to give consideration |
27 | for the gift certificate. |
28 | (I) An electronic credit voucher issued by a person that |
29 | holds a certificate issued under 49 U.S.C. Ch. 411 (relating to |
30 | air carrier certificates) or 413 (relating to foreign air |
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1 | transportation). |
2 | Section 2. This act shall take effect in 60 days. |
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