103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3785 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 815 ILCS 505/2SS Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that when a gift certificate is redeemed by a consumer, the seller shall return the remaining balance on the gift certificate in the form of cash or store credit. LRB103 25025 SPS 51359 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3785 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 815 ILCS 505/2SS 815 ILCS 505/2SS Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that when a gift certificate is redeemed by a consumer, the seller shall return the remaining balance on the gift certificate in the form of cash or store credit. LRB103 25025 SPS 51359 b LRB103 25025 SPS 51359 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3785 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 815 ILCS 505/2SS 815 ILCS 505/2SS 815 ILCS 505/2SS Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that when a gift certificate is redeemed by a consumer, the seller shall return the remaining balance on the gift certificate in the form of cash or store credit. LRB103 25025 SPS 51359 b LRB103 25025 SPS 51359 b LRB103 25025 SPS 51359 b A BILL FOR HB3785LRB103 25025 SPS 51359 b HB3785 LRB103 25025 SPS 51359 b HB3785 LRB103 25025 SPS 51359 b 1 AN ACT concerning business. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Consumer Fraud and Deceptive Business 5 Practices Act is amended by changing Section 2SS as follows: 6 (815 ILCS 505/2SS) 7 Sec. 2SS. Gift certificates. 8 (a) "Gift certificate" means a record evidencing a 9 promise, made for consideration, by the seller or issuer of 10 the record that goods or services will be provided to the 11 holder of the record for the value shown in the record and 12 includes, but is not limited to, a record that contains a 13 microprocessor chip, magnetic stripe or other means for the 14 storage of information that is prefunded and for which the 15 value is decremented upon each use, a gift card, an electronic 16 gift card, stored-value card or certificate, a store card or a 17 similar record or card. "Gift certificate" also includes a 18 credit slip issued by a store to a consumer who returns goods 19 that enables the consumer to receive other goods of similar 20 value in exchange for the returned goods. For purposes of this 21 Act, the term "gift certificate" does not include any of the 22 following: 23 (i) prepaid telecommunications and technology cards 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3785 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 815 ILCS 505/2SS 815 ILCS 505/2SS 815 ILCS 505/2SS Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that when a gift certificate is redeemed by a consumer, the seller shall return the remaining balance on the gift certificate in the form of cash or store credit. LRB103 25025 SPS 51359 b LRB103 25025 SPS 51359 b LRB103 25025 SPS 51359 b A BILL FOR 815 ILCS 505/2SS LRB103 25025 SPS 51359 b HB3785 LRB103 25025 SPS 51359 b HB3785- 2 -LRB103 25025 SPS 51359 b HB3785 - 2 - LRB103 25025 SPS 51359 b HB3785 - 2 - LRB103 25025 SPS 51359 b 1 including, but not limited to, prepaid telephone calling 2 cards, prepaid technical support cards, and prepaid 3 Internet disks that are distributed to or purchased by a 4 consumer; 5 (ii) prepaid telecommunications and technology cards 6 including, but not limited to, prepaid telephone calling 7 cards, prepaid technical support cards, and prepaid 8 Internet disks that are provided to a consumer pursuant to 9 any award, loyalty, or promotion program without any money 10 or other thing of value being given in exchange for the 11 card; or 12 (iii) any gift certificate usable with multiple 13 sellers of goods or services. 14 (b) On or after January 1, 2008, no person shall sell a 15 gift certificate that is subject to: (1) an expiration date 16 earlier than 5 years after the date of issuance; or (2) a 17 post-purchase fee. Any gift certificate issued prior to 18 January 1, 2008 that is subject to a fee must contain a 19 statement clearly and conspicuously printed on the gift 20 certificate stating whether there is a fee, the amount of the 21 fee, how often the fee will occur, that the fee is triggered by 22 inactivity of the gift certificate, and at what point the fee 23 will be charged. The statement may appear on the front or back 24 of the gift certificate in a location where it is visible to 25 any purchaser prior to the purchase. 26 (c) The face value of a gift certificate issued on or after HB3785 - 2 - LRB103 25025 SPS 51359 b HB3785- 3 -LRB103 25025 SPS 51359 b HB3785 - 3 - LRB103 25025 SPS 51359 b HB3785 - 3 - LRB103 25025 SPS 51359 b 1 January 1, 2008 may not be reduced in value and the holder of a 2 gift certificate issued after January 1, 2008 may not be 3 penalized in any way for non-use or untimely redemption of the 4 gift certificate. Any gift certificate issued prior to January 5 1, 2008 that is subject to an expiration date must contain a 6 statement clearly and conspicuously printed on the gift 7 certificate stating the expiration date. The statement may 8 appear on the front or back of the gift certificate in a 9 location where it is visible to any purchaser prior to the 10 purchase. 11 (d) Subsection (c) does not apply to any gift certificate 12 issued prior to January 1, 2008 that contains a toll free phone 13 number and a statement clearly and conspicuously printed on 14 the gift certificate stating that holders can call the toll 15 free number to find out the balance on the gift certificate, if 16 applicable, and the expiration date. The toll free number and 17 statement may appear on the front or back of the gift 18 certificate in a location where it is visible to any purchaser 19 prior to the purchase. 20 (d-5) After a gift certificate issued on or after the 21 effective date of this amendatory Act of the 103rd General 22 Assembly is redeemed by a consumer, the seller shall return 23 the remaining balance on the gift certificate in the form of 24 cash or store credit. 25 (e) This Section does not apply to any of the following 26 gift certificates: HB3785 - 3 - LRB103 25025 SPS 51359 b HB3785- 4 -LRB103 25025 SPS 51359 b HB3785 - 4 - LRB103 25025 SPS 51359 b HB3785 - 4 - LRB103 25025 SPS 51359 b 1 (i) Gift certificates that are distributed by the 2 issuer to a consumer pursuant to an awards, loyalty, or 3 promotional program without any money or thing of value 4 being given in direct exchange or solely for the gift 5 certificate by the consumer. 6 (ii) Gift certificates that are sold below face value 7 at a volume discount to employers or to nonprofit and 8 charitable organizations for fundraising purposes if the 9 expiration date on those gift certificates is not more 10 than 30 days after the date of sale. 11 (iii) Gift certificates that are issued for a food 12 product. 13 (Source: P.A. 97-954, eff. 1-1-13.) HB3785 - 4 - LRB103 25025 SPS 51359 b