Monday, December 24, 2007

Law Guarantees 2-Year Life of Gift Cards

'Tis the season . . . of the gift card! While most consumers are sold on their convenience, they may be unaware of a relatively new state law regarding terms of expiration.

The Consumer Fraud Act was passed in April 2006 and guarantees the validity of gift certificates or gift cards for 24 months immediately following the date of sale.

According to Robert Howie, Director of the Atlantic County Division of Consumer Affairs, not all retailers or consumers appear to be aware of this. His office has investigated several cases where consumers were not able to redeem their gift cards because they had failed to exchange them within a 12-month period. But according to this law, consumers should be able to redeem their cards for services for a full 2 years.

"In most cases, it was an honest mistake on the part of the business. They were simply not aware of the new law. Once it was explained to them, they were happy to honor the card," explained Howie.

Statute 56:8-110 regarding gift certificate, card, validity terms, states: In no case shall a gift certificate or gift card expire within the 24 months immediately following the date of sale."

Cards purchased prior to April 4, 2006 may only be good for one year, but anything purchased on or after that date is guaranteed to be redeemed for up to 2 years.

"Many businesses will tell you that it is in their best interest to forego all expiration dates and honor the gift cards regardless of purchase date," added Howie.

Consumers or retailers who have questions regarding this law may visit www.state.nj.us/lps/ca/ocp/ocplaw or call the Atlantic County Office of Consumer Affairs at (609) 345-6700, ext. 2477.

Click here to learn more about this law.

County News