Texas House Bill HB1723

Texas 2013 - 83rd Regular

Caption

Relating to the redemption of certain stored value cards, including gift cards, for cash.

Impact

If enacted, HB1723 will amend Chapter 604 of the Business & Commerce Code by introducing provisions specifically for the redemption of low-value stored value cards. This will provide clarity regarding consumers' rights and expectations when using such cards, particularly those with balances that fall below the $5 threshold. The bill can potentially lead to changes in how businesses manage their policies related to gift card redemptions and customer service practices, thereby impacting the retail industry significantly.

Summary

House Bill 1723 addresses the process for redeeming certain low-value stored value cards, including gift cards, for cash. The bill specifically permits consumers to request cash refunds for balances remaining on these cards when the amount is less than $5 after making a purchase. The intent behind this legislation is to enhance consumer protections by ensuring that individuals are not left with small, unusable balances on these cards, which can often be a source of frustration for consumers. It mandates that sellers must provide cash refunds on low-value cards upon request, thus promoting a more favorable purchasing environment.

Contention

While the bill is primarily aimed at consumer protection, it may raise concerns among certain retailers regarding the administrative implications of managing cash refunds for numerous low-value card transactions. Some retail businesses might argue that implementing this change could complicate their financial processes and lead to increased operational costs. However, supporters maintain that the benefits to consumers far outweigh these potential issues, as empowering customers with the ability to redeem card balances for cash will enhance overall satisfaction and trust in businesses.