The bill (S.4771E / A.7610E), increases the minimum time before cards are charged a user fee, places additional restrictions on those fees, and expands the expiration dates of gift cards in order to protect consumers.
Under the new law:
1. The time period in which fees can be charged to unused gift card balances has been increased from 13 to 25 months and any monthly service fees that are applied after this time must be waived if the consumer uses the gift card within three years of the issue date.
2. The gift card's terms and conditions must describe exactly what the procedure is to replace a missing card.
3. No gift card may have an expiration date of earlier than five years from the date of issuance.
The bill was signed on September 26 and takes effect within 90 days thereafter. The amendment is to General Business Law Section 396-i