50-6,108. Gift certificates or gift cards; regulation of; exceptions; definitions. - Kansas Statutes

50-6,108

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION Article 6.--CONSUMER PROTECTION

      50-6,108.   Gift certificates or gift cards;regulation of; exceptions; definitions.(a) On and after January 1, 2007, no person, firm,partnership, association or corporation shall sell a gift certificate or giftcard to apurchaser containing an expiration date which is less than five years from thedate of purchase.

      (b)   A gift certificate or gift card sold without an expiration date is validuntilredeemed or replaced.A merchant shall not be required to redeem a gift card or gift certificate forcash.

      (c)   No fees may be charged against the balance of a gift card or giftcertificatewithin 12 months from the date of issuance of the card.

      (d)   This section shall not apply to any of the following gift certificates orgift cardsissued on and after January 1, 2007, provided the expiration date appearson the front of the gift certificate or gift card:

      (1)   Gift certificates or gift cards that are distributed by the issuer to aconsumerwithout any money orother thing of value being given in exchange for the gift certificate or giftcard by theconsumer; or

      (2)   gift certificates or gift cards that are sold below face value at avolume discount toemployers or to nonprofit and charitable organizations for fund-raisingpurposes.

      (e)   All conditions and limitations shall be disclosed to the purchaser of agift certificate orgift card at the time of purchase. If such conditions or limitations are notcomplied with by thepurchaser, the issuer shall not be required to, but may, redeem such giftcertificate or gift card.

      (f)   As used in this section:

      (1)   "Gift card" means a tangible device, whereon is embedded or encoded in anelectronicor other format a value issued in exchange for payment, which promises toprovide to the bearermerchandise of equal value to the remaining balance of the device. "Gift card"does not include aprepaid bank card;

      (2)   "gift certificate" means a written promise given in exchange for full ordiscounted payment, or without any money or other thing of value being given inexchange,to providemerchandise in a specified amount or of equal value to the bearer of thecertificate. "Gift certificate"does not include a prepaid bank card;

      (3)   "prepaid bank card" means a general use, prepaid card or other electronicpayment devicethat is issued by a bank or other financial institution in a predenominatedamount useable at multiple,unaffiliated merchants or at automated teller machines, or both.

      (g)   This section shall be part of and supplemental to the Kansas consumerprotection act.

      History:   L. 2006, ch. 116, § 1; July 1.