44-7402. Gift card fees prohibited; underlying monies expiration date prohibited; civil penalty

A. A gift card may not be subject to a fee.

B. The underlying monies on a gift card may not be subject to an expiration date.

C. A gift card or a code or device associated with a gift card may contain an expiration date with respect to the gift card or the code or device, but not with respect to the underlying monies, if the gift card contains a clear and conspicuous disclosure that the underlying monies do not expire and that the consumer may contact the issuer for a replacement gift card or a replacement code or device associated with the gift card. If the gift card is an electronic gift card, the disclosure shall be in the message to the consumer that contains the card number or code.

D. This section does not apply to any of the following:

1. A gift card that is distributed to a consumer pursuant to an awards, loyalty or promotional program when no money or other property with value has been given by the consumer in exchange for the gift card.

2. A gift card that is sold below face value to a nonprofit or charitable organization or that is donated to a nonprofit or charitable organization for fund raising purposes.

3. A card for prepaid telecommunication services, an electronic funds transfer card or a bank-issued debit or general purpose reloadable prepaid card not marketed or labeled as a gift card or gift certificate.

E. Notwithstanding chapter 10, article 7 of this title, the sole penalty for a violation of this section is a civil penalty of not more than five hundred dollars per card violation.