S.B. 985 Summary

• Establishes new gift card fraud prevention law requiring merchants to lock gift cards in enclosed display cases, use secure packaging, and display conspicuous warning notices about gift card scams.

• Requires merchants selling gift cards to provide employee training on identifying and responding to gift card fraud according to office of consumer protection guidelines.

• Mandates third-party gift card resellers maintain detailed transaction records for at least three years, including seller/buyer information, gift card numbers, and amounts, with records subject to law enforcement inspection.

• Extends minimum redemption period for paper gift certificates from two years to four years; requires clear and conspicuous disclosure of terms, fees, and expiration dates on certificates sold in-person, electronically, or by telephone.

• Office of consumer protection must create model notice and fraud prevention guidelines regarding gift card scams, including information on common schemes and best practices for merchants; effective July 1, 2050.