2024 -- S 2511

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LC005402

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

     

     Introduced By: Senators LaMountain, and Burke

     Date Introduced: March 01, 2024

     Referred To: Senate Commerce

     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.

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     (a) “Gift certificate” means a record evidencing a promise, made for monetary

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consideration, by the seller or issuer for the record that goods or services will be provided to the

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owner of the record to the value shown in the record and includes, but is not limited to: (1) A record

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that contains a microprocessor chip, magnetic strip, or other means of storage of information that

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is pre-funded and for which the value is decremented upon each use; (2) A gift card, an electronic

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gift card, stored-value card or certificate; (3) A store card; (4) Prepaid long-distance telephone

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service that is activated by a prepaid card that requires dialing an access number or an access code

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for each call in addition to dialing the phone number to which the user of the prepaid card seeks to

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connect; or (5) A similar record or card. Any person, firm, or corporation that sells gift certificates

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for any product or merchandise sold by the person, firm, or corporation, shall be required to record

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the sales and keep an accurate and complete record of each gift certificate sold. The record shall

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include the date of sale; the full value of the certificate; the identification number assigned by the

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retailer to the certificate; and the state in which the sale of the certificate took place. The retailer

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shall further be required to give to the purchaser of gift certificates exceeding fifty dollars ($50.00)

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a written and numbered receipt evidencing the sale of the certificate. It shall be unlawful for any

 

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person, firm, or corporation of any kind to charge any surcharge or additional monthly or annual

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service or maintenance fees on gift certificates or to limit the time for the redemption of a gift

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certificate or to place an expiration date upon the gift certificate. No gift certificate or any

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agreement with respect to such gift certificate may contain language suggesting that an expiration

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date may apply to the gift certificate. Any person, firm, or corporation that shall violate the

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provisions of this section shall be punished by a fine of not more than two hundred dollars ($200).

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Due to the unlimited redemption period, the division of taxation shall not escheat the funds paid

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for those unredeemed gift certificates. Any unused portion of a redeemed gift certificate shall be

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afforded to the consumer by reissuing the gift certificate for the unused amount or providing cash

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where the balance due the consumer is less than one dollar ($1.00). This section shall not apply to

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the following:

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     (b) 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 that 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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     (c) Prepaid wireless telephone service or prepaid wireless telephone card. “Prepaid wireless

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telephone service” means wireless telephone service that is activated in advance by payment for a

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

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customer and delivery by the wireless provider of an agreed-upon amount of service corresponding

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to the total dollar amount paid in advance or within a certain period of time following the initial

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purchase or activation, unless additional payments are made.

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     (d) Gift cards or prepaid or store value cards that are issued by state-chartered financial

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institutions and credit unions or that are issued by third-party issuers usable at multiple, unaffiliated

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merchants or service providers; provided that said financial institutions, credit unions, or third-

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party issuers comply with the guidelines on disclosure and marketing as published by the office of

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the comptroller of the currency.

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     (e) Gift certificates that are issued by a state-chartered institution of higher education, but

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only in respect of the provisions set forth herein relating to expiration, escheatment, reissuance and

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refund. Rather, in the case of theses gift certificates, said institutions may refund any unused portion

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of a gift certificate upon an individual's separation from the institution or otherwise apply such

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funds against such individual's account at said institution; if such an institution is unable to

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complete such a refund or application, the associated funds shall be treated as abandoned after a

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period to two (2) years, and the institution shall escheat such funds to the division of taxation.

 

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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--GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

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     This act would provide that gift certificates issued by state-chartered institutions of higher

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education would be exempt from the provisions of the gift certificate statute relating to expiration,

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escheatment, reissuance and refund.

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     This act would take effect upon passage.

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