New York Division of Consumer Protection Publishes Model Gift Card Scam Notice
Effective June 20, 2023, sellers of gift cards in New York will be required to post a warning of potential gift card scams. The New York Division of Consumer Protection released model notice language on May 25, 2023, that businesses may use to comply with the law.
New York Gift Card Scam Notice Law
On December 22, 2022, New York enacted legislation requiring gift card sellers to post a warning to consumers about gift card fraud. The notice must be “conspicuous” and located where the gift cards are displayed or sold, such as the register. The signage must (1) warn the purchaser of prepaid card scams and (2) advise the purchaser of what to do if they suspect they are a potential victim of a gift card scam.
Model Notice Language
Senate Bill S1329 and Assembly Bill A1009, introduced in January 2023, directed the New York Division of Consumer Protection to publish a model notice that gift card sellers may use to comply with the scam notice law.
The model notice is available in three sizes on the Division of Consumer Protection’s website. Sellers may download and print the model notice to display in their store.
Although gift card retailers may develop their own scam notices, sellers will be deemed to be in compliance with New York law if they use the model notice. Retailers should begin planning to print and display the notice in order to meet the June 20, 2023 deadline for compliance.
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:
Jamie Ryan, at jryan@baileycav.com or (614) 229-3247; or
Jameel Turner, at jturner@baileycav.com or (614) 229-3260; or
Joan Colleran, at jcolleran@baileycav.com or (614) 229-3220
