State legislatures continue to advance gift card-related consumer protection measures, creating new operational and compliance considerations for retailers. This Client Alert reviews recently introduced and enrolled gift card legislation which will impose significant new storage, disclosure, and training obligations on retailers.
Hawaii: SB 2797
Hawaii’s SB 2797, introduced in January 2026, would require retailers to comply with several familiar obligations, including secure packaging, scam‑notice posting, and employee training, while adding new and notable storage requirements. Key provisions include:
- Mandatory Enclosed Display Case: SB 2797 would require all gift cards to be stored in a locked, enclosed display case accessible only to the merchant or its employees. Unlike Maryland, where locked storage is a permissible alternative to secure packaging, Hawaii’s locked‑case requirement is mandatory, even for cards meeting secure‑packaging standards. The only exception applies to chip‑enabled, numberless cards activated online after purchase.
- Clear and Conspicuous Disclosure of Terms: Retailers must disclose information regarding the date of issuance, any fees, and the expiration date on the gift card, its packaging, or electronic message (for e-gift cards). For gift cards without fees or expiration dates, the bill can be read to require that the card must affirmatively state “no fees” and “no expiration date.”
- Extended Expiration for Paper Gift Certificates: Paper certificates would require a minimum expiration period of four years from issuance (increased from two years).
- Scam Warning Notice: Retailers must display a scam warning notice in a substantially similar form to a template to be published by the state.
- Employee Training: Merchants must train employees to identify and respond to common gift card scam scenarios pursuant to state guidance that has not yet been published.
Virginia: HB 1431
HB 1431, introduced in January 2026, would require retailers to provide cash back when the remaining value on a gift certificate is less than $10. Virginia does not currently impose a cash redemption obligation.
If enacted, retailers operating in Virginia will need to update point of sale systems, employee training, and customer facing policies to ensure compliance with the cash back requirement.
We will continue to monitor these bills in Hawaii and Virginia and provide updates as they advance through the legislatures.
California: New Cash Redemption Threshold Reminder
Retailers should be mindful of California’s new gift card cash redemption statute, which is set to take effect on April 1, 2026. SB 22 raises California’s cash redemption requirement from $10 to $15, the highest in the country. Please refer to our October 2025 Client Alert for an overview of the potential consequences of this new law.
If you have any questions or would like to discuss the information provided in this Client Alert in more detail, please do not hesitate to contact us: