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Senate File 2147 - IntroducedA Bill ForAn Act 1relating to gift card fraud notice.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554H.1 Gift card fraud notice.
21. As used in this section, “gift card” means a written
3promise or electronic payment device that is all of the
4following:
5a. Usable at a single merchant; an affiliated group or
6merchants that share the same name, mark, or logo; or multiple
7unaffiliated merchants or service providers.
8b. Issued in a specific amount.
9c. May or may not be increased in value or reloaded.
10d. Purchased on a prepaid basis for the future purchase or
11delivery of any goods or services.
12e. Honored upon presentation.
132. a. A person, firm, partnership, association,
14corporation, store, or mercantile establishment that sells
15gift cards redeemable at any location other than the place
16of purchase shall display a conspicuous notice in a format
17prescribed by the consumer protection division of the office of
18the attorney general. The notice must do the following:
19(1) Caution the purchaser about gift card fraud.
20(2) Provide instruction on what to do if the purchaser
21believes that the purchaser may be a victim of a gift card
22fraud, including that the purchaser may report the alleged
23violation to the consumer protection division of the office of
24the attorney general.
25(3) Be posted in a conspicuous manner within the
26establishment in at least one of the following locations:
27(a) On all displays where third-party or open-loop gift
28cards are displayed.
29(b) At all physical points of sale.
30(c) On the electronic payment system screen prior to the
31purchaser finalizing payment.
32b. In addition to but not in lieu of paragraph “a”,
33subparagraph (3), a person, firm, partnership, association,
34corporation, store, or mercantile establishment may place a
35notice on the sales receipt.
-1- 13. A person, firm, partnership, association, corporation,
2store, or mercantile establishment that violates this section
3shall be given a written citation by the consumer protection
4division of the office of the attorney general. A person,
5firm, partnership, association, corporation, store, or
6mercantile establishment that receives three citations or more
7from the consumer protection division of the office of the
8attorney general shall be subject to a civil penalty of up to
9two hundred fifty dollars.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to gift card fraud notice. The bill
14requires any person, firm, partnership, association,
15corporation, store, or mercantile establishment that sells gift
16cards to other businesses to display a notice of gift card
17fraud.
18The bill requires that a notice shall provide information on
19what gift card fraud is and what a person can do if the person
20believes he or she may be the victim of gift card fraud. The
21bill also provides that the notice must be displayed on all
22displays that gift cards are located, at all physical points
23of sale, or on the electronic payment system screen prior to
24completion of the sale.
25The bill provides that a business that violates the bill
26shall receive a citation from the consumer protection division
27of the office of the attorney general and that three or more
28citations shall result in a civil penalty of no more than $250.
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2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554H.1 Gift card fraud notice.
21. As used in this section, “gift card” means a written
3promise or electronic payment device that is all of the
4following:
5a. Usable at a single merchant; an affiliated group or
6merchants that share the same name, mark, or logo; or multiple
7unaffiliated merchants or service providers.
8b. Issued in a specific amount.
9c. May or may not be increased in value or reloaded.
10d. Purchased on a prepaid basis for the future purchase or
11delivery of any goods or services.
12e. Honored upon presentation.
132. a. A person, firm, partnership, association,
14corporation, store, or mercantile establishment that sells
15gift cards redeemable at any location other than the place
16of purchase shall display a conspicuous notice in a format
17prescribed by the consumer protection division of the office of
18the attorney general. The notice must do the following:
19(1) Caution the purchaser about gift card fraud.
20(2) Provide instruction on what to do if the purchaser
21believes that the purchaser may be a victim of a gift card
22fraud, including that the purchaser may report the alleged
23violation to the consumer protection division of the office of
24the attorney general.
25(3) Be posted in a conspicuous manner within the
26establishment in at least one of the following locations:
27(a) On all displays where third-party or open-loop gift
28cards are displayed.
29(b) At all physical points of sale.
30(c) On the electronic payment system screen prior to the
31purchaser finalizing payment.
32b. In addition to but not in lieu of paragraph “a”,
33subparagraph (3), a person, firm, partnership, association,
34corporation, store, or mercantile establishment may place a
35notice on the sales receipt.
-1- 13. A person, firm, partnership, association, corporation,
2store, or mercantile establishment that violates this section
3shall be given a written citation by the consumer protection
4division of the office of the attorney general. A person,
5firm, partnership, association, corporation, store, or
6mercantile establishment that receives three citations or more
7from the consumer protection division of the office of the
8attorney general shall be subject to a civil penalty of up to
9two hundred fifty dollars.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to gift card fraud notice. The bill
14requires any person, firm, partnership, association,
15corporation, store, or mercantile establishment that sells gift
16cards to other businesses to display a notice of gift card
17fraud.
18The bill requires that a notice shall provide information on
19what gift card fraud is and what a person can do if the person
20believes he or she may be the victim of gift card fraud. The
21bill also provides that the notice must be displayed on all
22displays that gift cards are located, at all physical points
23of sale, or on the electronic payment system screen prior to
24completion of the sale.
25The bill provides that a business that violates the bill
26shall receive a citation from the consumer protection division
27of the office of the attorney general and that three or more
28citations shall result in a civil penalty of no more than $250.
-2-cm/jh