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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

     Introduced By: Representatives Casimiro, Noret, and Morales

     Date Introduced: February 21, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 59

GIFT CARD FRAUD

     6-59-1. Definitions.

     As used in this chapter, "gift card" means a written promise or electronic payment device

that:

     (1) Is usable at a single merchant or an affiliated group of merchants that share the same

name, mark, or logo, or is usable at multiple, unaffiliated merchants or service providers;

     (2) Is issued in a specific amount;

     (3) May or may not be increased in value or reloaded;

     (4) Is purchased and/or loaded on a prepaid basis for the future purchase or delivery of any

goods or services; and

     (5) Is honored upon presentation.

     6-59-2. Posting of notice of gift card fraud at retail establishments.

     No person, firm, partnership, association, retailer or corporation shall sell a gift card to a

purchaser unless the seller displays a conspicuous notice, in a form prescribed by the department

of business regulation, at or near where the gift card is displayed and at or near the physical location

where the sale occurs, that:

     (1) Cautions the purchaser about prepaid card scams; and

     (2) Instructs the purchaser on what to do if they suspect they might be a potential victim of

such a scam.

     6-59-3. Penalty for violation.

     Any person, firm, partnership, association, corporation or retail mercantile establishment

that violates the provisions of this chapter shall be subject to a civil penalty of up to two hundred

fifty dollars ($250).

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

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     This act would require retailers in the state that display gift cards for sale to post a notice

warning of gift card fraud and instructions on what to do if a customer suspects being a victim of

fraud. Any violations of this act would be subject to a civil penalty in the amount of up to two

hundred fifty dollars ($250).

     This act would take effect upon passage.

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