July 14, 2008
New laws will be in place for holiday gift-giving season
LANSING - Governor Jennifer M. Granholm has signed into law legislation that strengthens consumer protections on gift cards and gift certificates. The new laws take effect November 1 in time for the 2008 holiday gift-giving season.
"This legislation protects citizens' pocketbooks and makes sure that consumers are getting the most from their dollars," Granholm said. "Gift cards are a hassle-free solution to gift giving, and recipients should be free to spend them without pressure or penalty."
The new laws amend the Michigan Consumer Protection Act and the Uniform Unclaimed Property Act by prohibiting retailers from:
- refusing to accept a certificate during a sale, closeout or liquidation.
- restricting the holder of a certificate from using it in a manner consistent with the stated terms of the certificate.
- altering any term or condition of a certificate after it has been issued.
- failing to disclose the terms of a certificate. A retailer must clearly display or disclose the fact that the certificate is subject to terms and conditions. If a certificate is purchased online or over the phone, the fact that the certificate is subject to terms and conditions must be disclosed before the customer is able to purchase the gift certificate.
- failing to properly disclose the terms and conditions of a certificate. A retailer must print the terms and conditions on the gift certificate directly, or on the packaging containing the gift certificate, so long as there is a toll-free number on the card itself that a customer can call to get the terms and conditions if they so choose.
- failing to mention that a gift certificate subject to terms and conditions is, in fact, subject to those terms when advertising or promoting the certificate.
- refusing to accept the gift certificate as a portion of the payment where the purchase is greater than the balance remaining on the certificate.
- charging an inactivity fee or other service fee to the consumer for using or possessing a gift certificate.
- selling a gift certificate that expires less than five years after it is issued.
- considering them abandoned property after five years under the state's Uniformed Unclaimed Property Act.
The bills signed include: House Bill 4050, sponsored by Representative Fred Miller (D-Mt. Clemens); House Bill 4317 sponsored by Representative Mark Meadows (D-East Lansing); House Bill 4680 sponsored by Representative Michael Sak (D-Grand Rapids), all of which take effect November 1, 2008. Senate Bill 388 sponsored by Senator Nancy Cassis (R-Novi) takes effect September 30, 2008.
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