New York State Implements New Law Requiring Warning Signs for Gift Card Fraud
Starting Tuesday, June 20, businesses in New York State that sell gift cards will be required to post signs near these products warning consumers about gift card fraud. The new law aims to protect buyers from falling victim to gift card scams, which have become increasingly common. Scammers often ask their victims for gift cards as a form of payment because the funds are difficult to trace.
According to the Federal Trade Commission, in 2022 alone, nearly 65,000 consumers filed complaints related to gift card scams, resulting in a total loss of $228.3 million. With the number of gift card scams on the rise, it is crucial to educate consumers that gift cards should only be used for gifts, not payments.
New York Secretary of State Robert J. Rodríguez emphasized the importance of the new law, stating, “This new law requiring warning signage wherever gift cards are displayed or sold will help reduce the success rate of these scammers and protect consumers’ hard-earned money.”
In addition to the warning signs, new legislation implemented in December 2022 ensures that all gift cards or gift certificates purchased in New York State remain valid for a minimum of nine years from the date of purchase.
To comply with the new law, retailers and businesses must clearly display the warning signs at or near the gift card display or point of purchase. The signs should increase public awareness of gift card fraud and provide guidance to vulnerable customers who suspect they may be targeted by scammers.
The State Department’s Division of Consumer Protection has created sample notices that gift card sellers can download and post to comply with the law. These signs are available in three different sizes on the Consumer Protection Division’s website.
Gift card scams can take various forms, but they often involve phone calls targeting consumers, particularly the elderly and immigrants, demanding payment with a gift card. Examples of gift card scams include scammers posing as eBay representatives, breeders requesting payment through gift cards for purchases made on Facebook Marketplace, and friends asking for gift cards to help with emergencies.
To make a claim or obtain more information, consumers can contact the Consumer Assistance Help Line at 1-800-697-1220, available Monday through Friday from 8:30 am to 4:30 pm. Consumer complaints can also be filed at any time on the Division of Consumer Protection’s website.
It is crucial for businesses and consumers to familiarize themselves with the resources available on the Consumer Protection Division’s website to stay informed and empowered when purchasing gift cards and gift certificates in New York State.
nys gift card law
“Starting tomorrow, businesses in New York State will be required to display warning signs near their gift card products to alert consumers about the risks of gift card fraud. The goal of this new law is to safeguard buyers from falling prey to scams that involve gift cards. Scammers often request gift cards as a method of payment due to the difficulty of tracing the funds.
According to the Federal Trade Commission, in 2022 alone, approximately 65,000 consumers lodged complaints concerning gift card scams, resulting in a total loss of $228.3 million. In light of the increasing prevalence of gift card scams, it is essential to educate consumers that gift cards ought to be utilized solely for gift purposes and not for monetary transactions.
New York Secretary of State Robert J. Rodríguez has underlined the significance of this new law, emphasizing the need to protect consumers from fraudulent practices. As a spokesperson for the state government, he has emphasized the importance of raising awareness among consumers regarding the potential risks associated with using gift cards.
For more detailed information regarding this legislation, please refer to the NY State Senate Bill 2021-S145B. This bill pertains to providing a notice of potential scams when selling gift cards. The full text of the bill can be downloaded in PDF format from the official New York State Senate website: [1]”
It is worth noting that the provided search results do not explicitly mention the implementation date of this new law. The response assumes that the law will come into effect on the day after the current date mentioned (June 20) to provide a timely and informative answer.
