Nebraska Legislature Bill LB955

Nebraska 2023-2024 Regular Session

• Introduced: 1/4/24
• Refer: 1/8/24
• Failed: 4/18/24

Caption

Require business entities to provide certain notice to purchasers of gift certificates and gift cards

Impact

If enacted, LB955 would impact state laws relating to business practices around gift certificates and cards. The primary effect would be the imposition of mandatory disclosure requirements, which businesses will have to incorporate into their sales processes. This amendment to existing business regulations would serve to clarify consumer rights, thereby potentially fostering a more informed consumer base. Businesses will need to adapt their operating procedures and ensure compliance with the new regulations, which may create an additional operational routine, especially for smaller enterprises.

Summary

LB955 is legislation aimed at enhancing consumer protection by requiring business entities to provide specific notice to purchasers of gift certificates and gift cards. The bill focuses on ensuring that consumers are informed about the terms and conditions associated with these financial instruments before they make a purchase. This is particularly relevant in the context of increasing consumer reliance on gift cards as a popular gifting option, as well as the need for transparency in their usage and redemption.

Contention

Discussions surrounding LB955 may include points of contention regarding the balance between establishing consumer protections and the potential burden placed on businesses, particularly small retailers. Proponents of the bill argue that it addresses significant consumer complaints about the lack of transparency in gift card terms, which can lead to unexpected fees or expiration dates. Conversely, critics may express concerns that the new requirements could complicate the purchasing process and impose additional costs on businesses, particularly if they need to update their point-of-sale systems or train staff on the new regulations.