Do Gift Cards Keep on Giving How the Law Affects the Consumer, the Retailer and the State
Since January 1, 2008, California law has required retailers to redeem remaining gift card balances of less than $10 for cash when a consumer requests it. This threshold recently changed....more
California has expanded its gift card “cash-out” law, now requiring businesses to provide cash refunds for gift card balances under $15—the highest threshold in the nation—effective April 1, 2026. ...more
Kilpatrick’s Jordan Goodman recently presented “Talk Legal To Me” at the Sharpen Your Focus UPPO Annual Conference in San Antonio....more
California law has long required that closed-loop gift cards (i.e., cards redeemable only for goods and services from a single merchant or affiliated group) be redeemable for cash when the remaining balance falls below a...more
Effective April 1, 2026, California Senate Bill 22 (SB 22) will now require businesses to provide cash back on gift cards with a balance under $15 (up from $10 under current law) upon a consumer’s request. Given the nearly...more
The consumer products industry enters 2026 facing a rapidly shifting legal and regulatory landscape....more
Gift card cash redemption laws — also known as “cash-out” laws — require retailers to refund the remaining balance on a gift card in cash when that balance falls below a specified dollar threshold. These consumer protection...more
Since January 1, 2008, California law has required retailers to redeem remaining gift card balances of less than $10 for cash when a consumer requests it. This threshold is about to change....more
Welcome to your monthly legal insights on the trends impacting the Retail, Hospitality, and Food & Beverage Industries....more
California amended an existing law regarding the cash redemption value of gift certificates. Under the current law, any gift certificate with a cash value of less than ten dollars ($10) shall be redeemable in cash for its...more
In a closely watched consumer protection lawsuit, a federal court has ruled that Chipotle’s loyalty rewards points are not “gift certificates” or “gift cards” under either New York or California law....more
Gift cards are a perennial favorite for holiday shoppers. They’re easy to wrap, universally appreciated, and always the right size. But as gift-giving season approaches, it’s important to remember that gift cards are also a...more
Just in time for holiday shopping, new laws in Maryland and New Jersey that aim to combat gift card fraud have come into effect. These measures, along with similar laws recently enacted in other states, impose multi-layered...more
Our Unclaimed Property and State & Local Tax teams follow up on their 2024 advisory by reviewing the state legislation impacting businesses’ gift card programs so far in 2025....more
Taking your retail brand to the next level and attracting an equity investment based on the value of your brand requires not only business acumen but strategies for brand protection. Protecting your trademarks by way of...more
On December 17, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General (AG) Kwame Raoul settled their lawsuit against Grubhub for $140 million (Grubhub will only have to pay $25 million, with the balance...more
On Dec. 11, 2024, the OIG issued a Special Fraud Alert (Alert) related to certain fraud and abuse risks associated with marketing arrangements between Medicare Advantage Organizations (MAOs) and health care professionals...more
The US Department of Health and Human Services Office of Inspector General (OIG) published favorable Advisory Opinion No. 23-15 on January 3, which concluded that a consultant’s proposal to provide gift cards to existing...more
A recent Advisory Opinion (No. 23-15) from the U.S. Department of Health and Human Services’ Office of Inspector General (OIG) concluded that a healthcare consulting company’s plan to offer gift cards to physician practices...more
On December 28, 2023, the Office of Inspector General (the “OIG”) issued a favorable Advisory Opinion (No. 23-15) (the “Opinion”) to a consulting vendor (the “Requestor”) that wanted to provide up to $75 in gift cards to...more
On January 3, the U.S. Department of Health and Human Services Office of Inspector General (OIG) posted Advisory Opinion 23-15, approving a physician practice consultant’s proposal to offer gift cards to its customers when...more
The plan of a healthcare consulting firm (the “Firm”) to give gift cards to physicians in exchange for referrals to new customers does not violate the Federal Anti-Kickback Statute (the “AKS”), according to an Advisory...more
If your business offers a loyalty program in conjunction with a gift card, you likely already know that Section 520-e of New York’s General Business Law took effect December 10, 2023. This new law gives consumers a set grace...more
The holiday shopping season perennially holds great significance for retailers, and this impact is heightened in 2023 due to shifting consumer behaviors influenced by economic dynamics and evolving preferences. There are...more
Lab Owner Sentenced to Over 16 Years for Health Care Fraud, Money Laundering - On September 26, 2023, a US District Judge for the Western District of North Carolina sentenced a Charlotte lab owner, Donald Booker, to over...more