May 12, 2009, Introduced by Reps. Meadows, Miller, Scripps, Liss, Hammel, Haugh, LeBlanc, Gregory, Ebli, Terry Brown and Walsh and referred to the Committee on Commerce.
A bill to amend 1976 PA 331, entitled
"Michigan consumer protection act,"
by amending section 3e (MCL 445.903e), as added by 2008 PA 210.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3e. (1) A person engaged in the retail sale of goods or
services shall not do any of the following in connection with a
gift certificate issued for retail goods or services:
(a) Refuse to accept a gift certificate in payment for goods
or services used or bought for use primarily for personal, family,
or household purposes, including, but not limited to, goods or
services advertised on sale or pursuant to a liquidation or
closeout. This subdivision does not apply if the gift certificate
has an expiration date that does not violate section 3g and it is
presented for redemption after that expiration date.
(b) In any manner restrict the holder of a gift certificate
from using the gift certificate in a manner consistent with the
stated terms and conditions of the gift certificate.
(c) Alter any term or condition of a gift certificate after it
is issued.
(d) If a gift certificate has any terms or conditions, fail to
disclose the terms and conditions to a prospective purchaser by
doing any of the following:
(i) If a gift certificate is offered for sale by mail,
conspicuously stating in the offer that "terms and conditions are
applied to gift certificates and gift cards".
(ii) If a gift certificate is offered for sale by electronic,
computer, or telephonic means, including a statement that "terms
and conditions are applied to gift certificates or gift cards"
before the prospective purchaser is able to purchase the gift
certificate or conspicuously including that statement in the
electronic message offering the gift certificate for purchase.
(e) If a gift certificate has any terms or conditions, fail to
disclose the terms and conditions by conspicuously printing the
terms and conditions on 1 of the following:
(i) The gift certificate.
(ii) The envelope or packaging containing the gift certificate,
if a toll-free telephone number to access the terms and conditions
is printed on the gift certificate.
(iii) A separate printed document delivered to the purchaser, if
a toll-free telephone number to access the terms and conditions is
printed on the gift certificate.
(f) If a gift certificate has any terms or conditions, fail to
include in any advertisement or promotion for the gift certificate
a notice that states that "terms and conditions are applied to gift
certificates and gift cards".
(g) If the value of the gift certificate or remaining balance
of the gift certificate is less than the purchase price of goods or
services, refuse to accept the gift certificate and apply it to the
purchase price of the goods or services.
(2) As used in this section and sections 3f and 3g:
(a) "Person engaged in the retail sale of goods" includes a
person conducting a closeout, liquidation, or going-out-of-business
sale on behalf of the person engaged in the retail sale of goods or
that person's creditors.
(b) Subject to subsection (3), "gift certificate" means a
written promise or a gift card or other electronic payment device
that meets all of the following:
(i) Is only
usable at a single retailer; ,
is only usable at an
affiliated group of retailers that share the same name, mark, or
logo; ,
is only usable at multiple
retailers that operate retail
facilities at the same shopping mall, shopping center, or similar
shopping area; or is usable at multiple, unaffiliated retailers or
service providers.
(ii) Is issued in a specified amount.
(iii) May or may not be increased in value or reloaded.
(iv) Is purchased or loaded on a prepaid basis for the future
purchase or delivery of goods or services.
(v) Is honored upon presentation.
(c) "Terms and conditions" includes, but is not limited to, an
expiration date or a fee charged for the replacement of a gift
certificate that is lost, stolen, or destroyed.
(d) "Use" of a gift certificate includes making purchases with
or adding value to the gift certificate.
(3) As used in this section, "gift certificate" does not
include any of the following:
(a) A general use, prepaid card or other electronic payment
device
that is issued or sponsored and
sold to the consumer by a
financial institution, is issued in a predetermined amount, and is
usable at multiple, unaffiliated retailers or at automated teller
machines. As used in this subdivision, "financial institution"
means a bank, bank and trust, national bank, savings bank, savings
and loan association, credit union, or money transmitter organized
under the laws of this state, another state, the District of
Columbia, the United States, or any territory or protectorate of
the United States and their respective subsidiaries, affiliates, or
holding companies.
(b) An electronic payment device linked to a deposit account.
(c) A prepaid telephone calling card regulated under state or
federal law or a card used in connection with prepaid wireless
telephone service.
(d) An electronic payment device used to access an account
from which an individual may pay medical expenses, health care
expenses, dependent care expenses, or similar expenses on a pretax
basis under the internal revenue code, 26 USC 1 to 1789, or
regulations adopted pursuant to the internal revenue code.
(e) A prepaid discount card or program used to purchase
identified goods or services at a price or percentage below the
normal and customary price, if any expiration date of the prepaid
discount card or program is clearly and conspicuously disclosed.
(f) A payroll card or other electronic payment device linked
to a deposit account and given in exchange for goods or services
rendered.
(g) A gift certificate sold below face value or at a volume
discount to an employee, to a nonprofit or charitable organization,
or to an educational institution for fund-raising purposes.
(h) A gift certificate distributed to a consumer or employee
pursuant to an awards, rewards, loyalty, or promotional program, if
the consumer or employee is not required to give consideration for
the gift certificate.
(i) An electronic credit voucher issued by a person that holds
a certificate issued under chapter 411 of title 49 of the United
States Code, 49 USC 41101 to 41113, or a permit issued under
chapter 413 of title 49 of the United States Code, 49 USC 41301 to
41313.