New Bill would eliminate expiration dates from Gift Cards in Michigan
February 13, 2017 11:46
Under the new legislation put forward by the two House members this week, Gift Cards in Michigan would hold their value indefinitely.
Democratic Abdullah Hammoud, D-Dearborn and Democratic Robert Wittenberg, D-Oak Park introduced new How Bills 4193 and 4914 that would eliminate the expiration date on gift cards. The bill would also clarify certain prepaid discount cards, which are used to purchase goods, services or classes at a lower than normal price as gift cards.
In 2010 the federal government put new requirements around gift cards. The gift cards must be in a good condition for at least 5 years from the purchase date and must display their expiration date on the card, according to the Federal Trade Commission.
Since then, some states have extended the 5 year time period or made cards good indefinitely, which is what the new bills would do.
In a press release Wittenberg said that this type of consumer protection legislation in a no-brainer for him. Wittenberg believes when customers pay hard earned money for gift cards, for their friends, family or relatives, they should be able to redeem those gift cards without expiration.
The bills have more than co-sponsors, including some Republicans, which Hammoud pointed to as a sign of broad support.
Hammoud said that it was hard to argue against this type of legislation. When consumers buy gift cards, often from large corporations that re outside of Michigan they are entitled to use the product on their own terms.
He also added that they were encouraged to see broad bipartisan support for this bill package from both sides of the aisle. The protection for people of Michigan should remain a continual focus for the Michigan Legislature."
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