2023 -- H 5732 SUBSTITUTE A
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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 P ROVISIONS -- 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, "gift card" means a written promise or electronic payment device 6
that: 7
(1) Is usable at a single merchant or an affiliated group of merchants that share the same 8
name, mark, or logo, or is usable at multiple, unaffiliated merchants or service providers; 9
(2) Is issued in a specific amount; 10
(3) May or may not be increased in value or reloaded; 11
(4) Is purchased and/or loaded on a prepaid basis for the future purchase or delivery of any 12
goods or services; and 13
(5) Is honored upon presentation. 14
6-59-2. Posting of notice of gift card fraud at retail establishments. 15
No person, firm, partnership, association, retailer or corporation shall sell a gift card to a 16
purchaser unless the seller displays a conspicuous notice, in a form prescribed by the department 17
of business regulation, at or near where the gift card is displayed and at or near the physical location 18
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where the sale occurs, that: 1
(1) Cautions the purchaser about prepaid card scams; and 2
(2) Instructs the purchaser on what to do if they suspect they might be a potential victim of 3
such a scam. 4
6-59-3. Penalty for violation. 5
Any person, firm, partnership, association, corporation or retail mercantile establishment 6
that violates the provisions of this chapter shall be subject to a civil penalty of up to two hundred 7
fifty dollars ($250). 8
SECTION 2. This act shall take effect upon passage. 9
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COMMERCI AL LAW--GENERAL REGULATO RY PROVISIONS -- GIFT
CARD FRAUD
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This act would require retailers in the state that display gift cards for sale to post a notice 1
warning of gift card fraud and instructions on what to do if a customer suspects being a victim of 2
fraud. Any violations of this act would be subject to a civil penalty in the amount of up to two 3
hundred fifty dollars ($250). 4
This act would take effect upon passage. 5
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