Texas House Bill HB2391

Texas 2015 - 84th Regular

Caption

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

Impact

The bill seeks to amend Chapter 604 of the Business and Commerce Code, specifically by introducing a new subchapter that explicitly outlines the conditions under which cash refunds must be provided for low-value stored value cards. This change could significantly alter retail practices in Texas, as businesses that issue such cards will have to recalibrate their operational policies to comply with the new refund requirement. The expected outcome is greater consumer satisfaction and a reduction in unclaimed balances, which can be a common outcome of gift card purchases, thus benefiting consumers in the long run.

Summary

House Bill 2391 addresses the issue of cash redemption for certain low-value stored value cards, including gift cards, in the state of Texas. The bill proposes that if a consumer uses a stored value card for a purchase and has a remaining balance of less than $2.50, they have the right to request that the seller refund that remaining balance in cash. This provision aims to enhance consumer rights by ensuring that individuals are not penalized for the small leftover balances on their gift cards, which often are left unused or forgotten.

Sentiment

The sentiment surrounding HB2391 is largely positive among consumer advocacy groups and supporters who view it as a victory for consumer rights. Legislators who backed the bill often articulated that addressing the refund of small balances promotes fairness and accountability in retail practices. However, there may have been some concern from retailers regarding the additional operational burden this bill could impose, which could be viewed as a potential infringement on their business models.

Contention

Notable points of contention regarding the bill include the potential impact it could have on retailers, particularly small businesses that might struggle with the logistics of processing cash refunds for low-value cards. Critics could argue that the requirement for cash redemption could lead to increased losses for businesses or could deter retailers from offering gift cards altogether. However, proponents emphasize that the consumers' right to access their funds should take precedence, framing the legislation as an essential consumer protection measure.