Michigan Governor Strengthens Consumer
Protection on Gift Cards August 14, 2008 New laws take effect on November 1, before holiday season
By Jeanie Casison
Gift card recipients in Michigan can relax when making their purchases at retail. On July 14, Governor Jennifer M. Granholm signed into law legislation that will extend greater consumer protection on gift cards and gift certificates.
The move by the Michigan Governor follows favorable gift card and gift certificate laws previously introduced by California and New York. Rich Olson, director of sales of Optimum Card Solutions and director of communications for the Incentive Gift Card Council, says he expects more states to introduce similar laws, and more governors to follow Granholm's lead. "I would expect more of this to happen. During an election year, there tends to be more focus on gift cards and consumer protection."
Amending the Michigan Consumer Protection Act and the Uniform Unclaimed Property Act, the new laws take effect on November 1 and will prohibit retailers from refusing to accept a certificate during a sale, closeout or liquidation; charging an inactivity fee or other service fee to the consumer for using or possessing a gift certificate; or selling a gift certificate that expires less than five years after being issued.
Additionally, retailers are not allowed to restrict the holder of a certificate from using it in a manner consistent with the stated terms of the certificate; alter any terms or conditions after issue; refuse to accept the gift certificate as a portion of the payment where the purchase is greater than the balance remaining on the certificate; or consider cards abandoned property after five years.
"This legislation protects citizens' pocketbooks and makes sure that consumers are getting the most from their dollars," says Governor Granholm. "Gift cards are a hassle-free solution to gift giving and recipients should be free to spend them without pressure or penalty."
RSS
