2006 -- S 2683

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2006

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A N A C T

RELATING TO COMMERCIAL LAW -- UNFAIR SALES PRACTICES

     Introduced By: Senator William A. Walaska

     Date Introduced: February 14, 2006

     Referred To: Senate Commerce, Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 6-13-12 of the General Laws in Chapter 6-13 entitled "Unfair Sales

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Practices" is hereby amended to read as follows:

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     6-13-12. Sales of gift certificates. -- "Gift certificate" means a record evidencing a

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promise, made for monetary consideration, by the seller or issuer for the record that goods or

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services will be provided to the owner of the record to the value shown in the record and includes,

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but is not limited to, a record that contains a microprocessor chip, magnetic strip or other means

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of storage of information that is pre-funded and for which the value is decremented upon each

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use, a gift card, an electronic gift card, stored-value card or certificate, a store card, prepaid long

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distance telephone service that is activated by a prepaid card that requires dialing an access

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number or an access code for each call in addition to dialing the phone number to which the user

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of the prepaid card seeks to connect, or a similar record or card. Any person, firm, or corporation

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that sells gift certificates for any product or merchandise sold by the person, firm, or corporation,

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shall be required to record the sales and keep an accurate and complete record of each gift

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certificate sold. The record shall include the date of sale, the full value of the certificate, the

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identification number assigned by the retailer to the certificate, and the state in which the sale of

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the certificate took place. The retailer shall further be required to give to the purchaser of gift

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certificates exceeding fifty dollars ($50.00) a written and numbered receipt evidencing the sale of

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the certificate. It shall be unlawful for any person, firm, or corporation of any kind to charge

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additional monthly or annual service or maintenance fees on gift certificates or to limit the time

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for the redemption of a gift certificate or to place an expiration date upon the gift certificate. No

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gift certificate or any agreement with respect to such gift certificate may contain language

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suggesting that an expiration date may apply to the gift certificate. Any person, firm, or

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corporation that shall violate the provisions of this section shall be punished by a fine of not more

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than two hundred dollars ($200). Due to the unlimited redemption period, the division of taxation

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shall not escheat the funds paid for those unredeemed gift certificates. Any unused portion of a

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redeemed gift certificate shall be afforded to the consumer by reissuing the gift certificate for the

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unused amount or providing cash where the balance due the consumer is less than one dollar

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($1.00). This section shall not apply to the following:

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      (a) Gift certificates that are distributed to a consumer pursuant to an awards, loyalty or

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promotional program without any money or other thing of value being given in exchange for the

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gift certificate by the consumer. Any restrictions or limitations which such gift certificates may be

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subject to must be disclosed to the consumer, in writing, at the time the gift certificates are

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distributed to the consumer.

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      (b) This section shall not be binding upon, and is not intended to affect any prepaid

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wireless telephone service. Prepaid wireless telephone service or prepaid wireless telephone card.

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"Prepaid wireless telephone service" means wireless telephone service that is activated in advance

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by payment for a finite dollar amount of service or for a finite set of minutes that terminate either

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upon use by a customer and delivery by the wireless provider of an agreed-upon amount of

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service corresponding to the total dollar amount paid in advance or within a certain period of time

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following the initial purchase or activation, unless additional payments are made.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW -- UNFAIR SALES PRACTICES

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     This act would exempt prepaid wireless telephone service from the requirements

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associated with gift certificates.

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     This act would take effect upon passage.

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LC00210

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