New Jersey § 56:8-110

§ 56:8-110.

a. A gift certificate or gift card sold after the effective date of this amendatory

act 1 shall retain full unused value until presented in exchange for merchandise, or shall

have any and all conditions and limitations, as permitted in paragraphs (1) through

(3) of this subsection, disclosed to the purchaser of the gift certificate or gift

card at the time of purchase as provided in subsection b. of this section. (1) In no case shall the underlying funds associated with a gift certificate or gift card expire within the 24 months immediately following

the date of sale. (2) No dormancy fee shall be charged against a gift certificate or a gift card within

the 24 months immediately following the date of sale, nor shall one be charged within

the 24 months immediately following the most recent activity or transaction in which

the certificate or card was used. (3) A dormancy fee charged against a gift certificate or gift card as permitted by

this subsection shall not exceed $2.00 per month. b. The terms of any expiration date or dormancy fee applicable to a gift certificate

or gift card, as permitted by subsection a. of this section, shall be disclosed to

a consumer by: (1) written notice of the expiration date or dormancy fee or both printed in at least

10 point font, on the gift certificate or gift card, or the sales receipt for the

certificate or card, or the package for the certificate or card; and (2) written notice, in at least 10 point font, on the gift certificate or gift card,

or the sales receipt for the certificate or card, or the package for the certificate

or card, of a telephone number which the consumer may call, for information concerning

any expiration date or dormancy fee. c. Beginning September 1, 2012 if a stored value card deemed a gift card or gift certificate

pursuant to section 5 of P.L.2010, c. 25 ( C.46:30B-42.1 ) is redeemed and a balance of less than $5 remains on the card after redemption,

at the owner's request the merchant or other entity redeeming the card shall refund

the balance in cash to the owner. A merchant or other entity required to comply with the provisions of this subsection

shall be liable to a penalty of $500 for each violation plus restitution of the amount

of the cash value remaining on the stored value card, provided however that the amount

of the penalty shall be trebled for an aggregate of 100 such violations occurring

during any 12-month period. Failure to provide requested cash redemption for each stored value card shall be

considered a separate violation. Upon receiving evidence of any violation of the provisions of this subsection, the

Director of the Division of Consumer Affairs, or the director's designee, is empowered

to hold hearings upon those violations and upon finding the violation to have been

committed, to assess a penalty against the person alleged to have committed the violation

in the amounts provided in this subsection. The director shall thereafter return to the owner of the card the amount of the

cash value remaining on the card recovered under this subsection, and this shall be

the sole remedy available to the owner for those violations. This subsection does not impose on an issuer or merchant or other entity required

to comply with the provisions of this subsection an obligation to advertise the availability

of a refund balance redemption. Notwithstanding the foregoing or any provision in section 3 of P.L.1981, c. 454

( C.56:12-16 ), an issuer, seller or redeemer of stored value cards may elect to include a disclosure

or may, in the alternative, include a statement on the stored value card or other

marketing materials that the card “is not redeemable for cash except as required by

law” or similar statement. This subsection shall not apply to (1) a non-reloadable stored value card with an

initial value of $5 or less; or (2) a stored value card that is not purchased but

is provided in lieu of a refund for returned merchandise; or (3) a stored value card

that can be redeemed at multiple merchants that are not under common ownership or

control, including but not limited to network-branded stored value cards; or (4)

a rewards card; or (5) a stored value card that is donated or sold below face value

to a nonprofit or charitable organization or an educational organization; or (6)

a stored value card that is redeemable for admission to events or venues at a particular

location or group of affiliated locations, or for goods or services in conjunction

with admission to those events or venues, or both, at the event or venue or at specific

locations affiliated with and in geographic proximity to the event or venue. d. As used in this section: “ Dormancy fee ” means a charge imposed against the unused value of a gift card or gift certificate

due to inactivity; “ 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. “Gift card” does not include a prepaid telecommunications or technology card, prepaid

bank card or rewards card; “ Gift certificate ” means a written promise given in exchange for payment to provide merchandise in

a specified amount or of equal value to the bearer of the certificate. “Gift certificate” does not include a prepaid telecommunications or technology card,

prepaid bank card or rewards card; “ Merchandise ” means and includes any objects, wares, goods, commodities, services or anything

offered, directly or indirectly, to the public for sale; “ Prepaid bank card ” means a general use, prepaid card or other electronic payment device that is issued

by a bank or other financial institution, or a licensed money transmitter, in a pre-denominated

amount usable at multiple, unaffiliated merchants or at automated teller machines,

or both, but shall not include a card issued by a retail merchant; “ Prepaid telecommunications or technology card ” includes, but is not limited to: a prepaid telephone calling card; prepaid technical

support card; or prepaid Internet disk distributed to or purchased by a consumer;

and “ Rewards card ” means a card or certificate distributed by the issuer to a consumer pursuant to

an awards, loyalty, rewards or promotional program, without any money or other consideration

or thing of value by the consumer in exchange for the card or certificate. 1

L.2005, c. 254, eff. April 4, 2006.