Albany, NY¬ – Assemblyman Jeffrey Dinowitz (D-Bronx) announced that his bill to prevent fees from being assessed on gift cards and certificates has passed unanimously in the State Assembly (A.7610). “Too often have consumers either purchased or been given a gift card, only to later find out that there is little to no money left to spend due to exorbitant fees assessed on the card due to inactivity,” Assemblyman Dinowitz said.

Current New York State law requires notice of expiration dates as well as any fees that will be charged along with other terms and conditions that must be clearly and conspicuously stated on the card, package, or accompanying printed document. Fees are currently not allowed to be assessed prior to the thirteenth month of dormancy, but New York State does not specify how much of a fee can be assessed, offering consumers little to no protection. Consumers purchase gift cards just like other products sold that have no fees assessed after the initial purchase.

“Businesses selling gift cards have already made the profit of selling it, so there is no reason that a consumer should be penalized with fees for not using it within a specific time frame,” said Mr. Dinowitz. “It is simply unconscionable that a consumer who pays for a gift card in full should lose their investment because of the amount of time passed before spending the funds.”

If the legislation becomes law New York will be joining twenty other states that have passed similar legislation preventing any fees on gift cards and certificates, with some only allowing a fee at the time of purchase.