PRIOR PRINTER'S NO. 332 PRINTER'S NO. 3580
No. 311 Session of 2005
INTRODUCED BY GODSHALL, BAKER, BIANCUCCI, BUNT, COSTA, CREIGHTON, CURRY, DeLUCA, DERMODY, DeWEESE, FABRIZIO, FICHTER, FRANKEL, GEIST, GEORGE, GINGRICH, HARPER, KENNEY, KOTIK, LaGROTTA, LEACH, MANDERINO, McGILL, MELIO, MILLARD, MUNDY, PALLONE, PHILLIPS, PICKETT, READSHAW, RUBLEY, SAINATO, SANTONI, SCAVELLO, SCHRODER, STABACK, WALKO, WASHINGTON, WATSON, YOUNGBLOOD AND ZUG, FEBRUARY 8, 2005
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, FEBRUARY 14, 2006
AN ACT 1 Amending the act of December 17, 1968 (P.L.1224, No.387), 2 entitled "An act prohibiting unfair methods of competition 3 and unfair or deceptive acts or practices in the conduct of 4 any trade or commerce, giving the Attorney General and 5 District Attorneys certain powers and duties and providing 6 penalties," further defining "unfair methods of competition" 7 and "unfair or deceptive acts or practices." 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Section 2(4) of the act of December 17, 1968 11 (P.L.1224, No.387), known as the Unfair Trade Practices and 12 Consumer Protection Law, reenacted and amended November 24, 1976 13 (P.L.1166, No.260), is amended by adding a subparagraph to read: 14 Section 2. Definitions.--As used in this act. 15 * * * 16 (4) "Unfair methods of competition" and "unfair or deceptive 17 acts or practices" mean any one or more of the following:
1 * * * 2 (xxii) Levying or assessing a dormancy fee on a gift <-- 3 certificate or gift card. The term "dormancy fee" shall mean a 4 fixed charge or fee, whether levied or assessed one time or 5 periodically, that reduces the total amount for which the holder 6 may redeem on a gift certificate or gift card because of 7 inactivity or lack of use of the gift certificate or gift card 8 for a certain period of time. 9 (XXII) SELLING OR OFFERING TO SELL A GIFT CERTIFICATE TO A <-- 10 PURCHASER THAT INCLUDES AN EXPIRATION DATE OR A RIGHT OF THE 11 SELLER TO IMPOSE AND COLLECT AFTER THE SALE ANY TYPE OF CHARGE 12 OR FEE, INCLUDING, BUT NOT LIMITED TO, SERVICE CHARGE, DORMANCY 13 FEE, ACCOUNT MAINTENANCE FEE, CASH-OUT FEE, REPLACEMENT CARD 14 FEE, ACTIVATION FEE OR CHARGE OR REACTIVATION FEE OR CHARGE, 15 THAT REDUCES THE FACE OR MONETARY VALUE OF THE GIFT CERTIFICATE 16 ESTABLISHED AT THE TIME OF SALE. A GIFT CERTIFICATE THAT DOES 17 NOT INCLUDE AN EXPIRATION DATE AND THAT DOES NOT PROVIDE THE 18 SELLER WITH A RIGHT TO IMPOSE AND COLLECT ANY SUCH TYPE OF 19 CHARGE OR FEE SHALL NOT BE PRESUMED ABANDONED AND UNCLAIMED 20 PROPERTY FOR PURPOSES OF ARTICLE XIII OF THE ACT OF APRIL 9, 21 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE." THE TERM 22 "GIFT CERTIFICATE" SHALL MEAN A WRITING IDENTIFIED AS A GIFT 23 CERTIFICATE OR GIFT CARD PURCHASED BY A PERSON NOT REDEEMABLE IN 24 CASH AND USABLE IN ITS FACE AMOUNT IN LIEU OF CASH IN EXCHANGE 25 FOR GOODS OR SERVICES SUPPLIED BY THE SELLER. THE TERM INCLUDES, 26 BUT IS NOT LIMITED TO, AN ELECTRONIC CARD WITH A BANKED DOLLAR 27 VALUE, MERCHANDISE CREDIT, CERTIFICATE WHERE THE ISSUER HAS 28 RECEIVED PAYMENT FOR THE FULL FACE VALUE OF THE FUTURE PURCHASE 29 OR DELIVERY OF GOODS OR SERVICES AND ANY OTHER MEDIUM THAT 30 EVIDENCES THE GIVING OF CONSIDERATION IN EXCHANGE FOR THE RIGHT 20050H0311B3580 - 2 -
1 TO REDEEM SUCH CERTIFICATE, ELECTRONIC CARD OR OTHER MEDIUM FOR 2 GOODS, SERVICES, CREDIT OR MONEY OF AT LEAST AN EQUAL VALUE. THE 3 TERM ALSO INCLUDES A GIFT CARD, BUT DOES NOT INCLUDE A GIFT CARD 4 USABLE WITH MULTIPLE SELLERS OF GOODS OR SERVICES, PROVIDED THE 5 EXPIRATION DATE, IF ANY, IS PRINTED ON THE CARD AND THAT THE 6 CARD IS NOT LIMITED TO USE ONLY WITH AFFILIATED SELLERS OF GOODS 7 OR SERVICES. 8 Section 2. This act shall apply to gift certificates and <-- 9 gift cards issued after the effective date of this section. 10 Section 3. This act shall take effect in 60 days. L21L12DMS/20050H0311B3580 - 3 -