2023 -- H 5732
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LC001807
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO COMMERCI AL LAW--GENERAL REGULATORY PROVISION S -- GIFT
CARD FRAUD
Introduced By: Representatives Casimiro, Noret, and Morales
Date Introduced: February 21, 2023
Referred To: House Corporations
It is enacted by the General Assembly as follows:
SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL 1
REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: 2
CHAPTER 59 3
GIFT CARD FRAUD 4
6-59-1. Definitions. 5
As used in this chapter, the following words and phrases shall have the following meanings: 6
(1) "Gift card" means a tangible device, whereon is embedded or encoded in an electronic 7
or other format, a value issued in exchange for payment, which promises to provide to the bearer 8
merchandise of equal value to the remaining balance of the device. 9
(2) "Merchandise" means any objects, wares, goods, commodities, services, or anything 10
offered, directly or indirectly, to the public for sale. 11
(3) "Retail mercantile establishment" means any place of business where merchandise is 12
exposed or offered for sale at retail to members of the consuming public. 13
6-59-2. Posting of notice of gift card fraud at retail establishments. 14
No person, firm, partnership, association, retail mercantile establishment or corporation 15
shall sell a gift card to a purchaser unless the seller displays a conspicuous notice at or near where 16
the gift card is displayed or at or near the physical location where the sale occurs, that: 17
(1) Cautions the purchaser about prepaid card scams; and 18
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(2) Instructs the purchaser on what to do if they suspect they might be a potential victim of 1
such a scam. 2
6-59-3. Employee training. 3
Every retail mercantile establishment in this state that displays gift cards for sale shall train 4
employees on how to identify and respond to gift card fraud. The attorney general's office will 5
disseminate suggested training materials. 6
6-59-4. Penalty for violation. 7
Any person, firm, partnership, association, corporation or retail mercantile establishment 8
that violates the provisions of this chapter shall be subject to a civil penalty of five hundred dollars 9
($500), which may be collected and enforced by the Rhode Island department of attorney general, 10
consumer protection division. The superior court shall have jurisdiction of proceedings for the 11
enforcement of the penalty provided by this chapter. 12
SECTION 2. This act shall take effect upon passage. 13
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COMMERCI AL LAW--GENERAL REGULATORY P ROVISIONS -- GIFT
CARD FRAUD
***
This act would require retail mercantile establishments in the state that display gift cards 1
for sale to post a notice warning of gift card fraud and instructions on what to do if a customer 2
suspects being a victim of fraud. The act would also require employees to be trained on how to 3
identify and respond to gift card fraud. The attorney general's office would be required to 4
disseminate suggested training materials. 5
Any violations of this act would be subject to a civil penalty in the amount of five hundred 6
dollars ($500). 7
This act would take effect upon passage. 8
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LC001807
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