Passed on June 25, 2012 and signed into law on June 29, 2012, Senate Bill 1928 (SB1928) amended New Jersey’s unclaimed property law. The law, closely watched by issuers of gift cards, provides a five-year abandonment period, a new “cash-back” provision, prohibition of post-purchase fees and expiration dates, disclosure requirements and the collection of ZIP codes from purchasers. Although the new law was intended to fix some of the infirmities of the old law, the data collection provision appears to have the gift card community gearing up for another challenge.
This alert summarizes SB1928, parts of which will be effective as early as September 1, 2012.
In 2010, Assembly Bill 3002 (AB3002) amended New Jersey’s unclaimed property law to provide that unused stored value and gift card balances would escheat after two years’ inactivity and to require issuers to collect, at minimum, ZIP code information from purchasers. (To read Venable's January 2011 alert about New Jersey’s gift card law, please click below.) SB1928 revises some provisions of AB3002 and adds new requirements.
Please see full alert below for more information.
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