Category Archives: Gift Cards

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FTC Settles Major Prepaid Card Advertising Case and Doesn’t Say Much about It

For those of us who are regular readers of FTC press releases, the allure of last week’s announcement that the FTC settled its lawsuit against prepaid card company NetSpend Corporation may be more in the substance – or lack thereof – of the announcement itself. In four sentences, the FTC simply stated that the advertiser … Continue Reading

Sweeping New Federal Regulations for the Prepaid Industry

Note: We have revised the description of the terms of the settlement in our recent blog post on the Carribean Cruise Line TCPA matter. Click here to read the corrected post. Having trouble sleeping and need something to read? Lucky for you the Consumer Financial Protection Bureau (the Bureau) recently released its 1700+ page final rule … Continue Reading

Returned to Sender: New Jersey Repeals Zip Code Collection Requirement for Gift Card Sellers

The gift card saga in New Jersey looks like it has finally wrapped up with Governor Chris Christie tying a bow on the proceedings by signing NJ S-2235, eliminating data collection requirements for sellers of qualifying gift cards and gift certificates.  Those who have followed this story may recall that back in 2010 New Jersey … Continue Reading

Your Escheatin’ Heart Will Tell On You: Delaware Unseals Massive Gift Card Unclaimed Property Lawsuit

After remaining under seal for close to a year, an unusually exciting – well, exciting for lawyers, anyway – whistleblower (“qui tam”) case involving unclaimed gift cards in Delaware has now been unsealed and released to the public after Delaware state prosecutors independently investigated the claims and joined the case in March 2014.  The lawsuit was … Continue Reading

Retailers Should Be Nice When Charging Tax on Gift Cards or Risk Coal in Their Stockings

On December 10th, with consumers decking the halls and swarming retail stores, the Commissioner of the Connecticut Department of Revenue Services, Kevin B. Sullivan, gave a warning to holiday shoppers that gift cards are not subject to sales tax in Connecticut. According to the Commissioner, shoppers should return to the store with their receipts and … Continue Reading

O Say Can You See…That New Jersey Has Finally Amended Its Gift Card Laws?

With the nation just having celebrated its 236th birthday, you probably still  have gifts on your mind. Great news—at least for now, you can pick up a gift card in New Jersey without giving up any personal information. As we noted in an entry earlier this Spring, a few prominent gift card sellers, including InComm, pulled … Continue Reading

CFPB Launches Rulemaking On General Purpose Reloadable Prepaid Cards

The Consumer Financial Protection Bureau on May 23, 2012 announced that it is asking for comments about general purpose reloadable prepaid cards (“GPR Cards”) through an Advance Notice of Proposed Rulemaking (“ANPR”). The Bureau intends to issue a proposal to extend consumer protections provided under Regulation E to GPR Cards. Regulation E implements the Electronic … Continue Reading

Gift Card Sellers To New Jersey: Baby We Were Born To Run

Imagine this: you’re running late to your favorite cousin Ronny’s birthday party, held at one of the hippest places at the Jersey Shore.  You have no gift for him but plan to stop along the New Jersey Turnpike at some place open all night  to pick up a gift card.  But you soon find that you’re … Continue Reading

Asking for ZIP Codes in NJ Could Get You in Trouble, but then again, So Could Not Asking

The Third Circuit’s decision in New Jersey Retail Merchants Association (“NJRMA”) has several important implications for gift card sellers, including compliance with abandoned property laws, which have been discussed here.  Less widely discussed is the potential conflict between NJRMA’s holding that gift card sellers must collect buyer ZIP codes and privacy restrictions contained in the … Continue Reading