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ARTICLE · 21 DECEMBER 2012

Federal Gift Card Bill Would Significantly Affect Promotional And Loyalty Gift Card Programs

Loeb & Loeb LLP
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On December 10, 2012, Sen. Bob Casey (D-PA) announced his joint sponsorship of Senate Bill 3636, known as the "Gift Card Consumer Protection Act of 2012," which was originally introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs on November 26, 2012.

United StatesConsumer Protection
Loeb & Loeb LLP'S Advanced Media Technology Group
Loeb & Loeb LLP'S Advanced Media Technology Group

On December 10, 2012, Sen. Bob Casey (D-PA) announced his joint sponsorship of Senate Bill 3636, known as the "Gift Card Consumer Protection Act of 2012," which was originally introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs on November 26, 2012.  The Bill would amend the CARD Act to prohibit all expiration dates and fees associated with inactivity.  Currently, if fees and expiration dates are properly disclosed, the CARD Act permits expiration dates after 5 years and permits a single fee per month after thirteen months of inactivity.  The Bill would also remove the current exemption for loyalty, award and promotional gift cards, thereby prohibiting all fees and expiration dates for such cards.  This would have a tremendous impact on all gift card programs, including in particular purely promotional and customer loyalty/award gift card programs and so-called Daily Deal programs.  The latter programs have been structured so

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