ARTICLE · 01 FEBRUARY 2011

Third Circuit Issues Temporary Injunction on New Jersey Zip-code Collection Requirement

Perkins Coie LLP

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On June 29, 2010, New Jersey enacted Assembly Bill 3002, which substantially revised the state’s unclaimed property laws. Many of these revisions directly impact issuers of "stored value cards.

United StatesConsumer Protection

On January 31, 2011, the U.S. Court of Appeals for the Third Circuit issued a temporary injunction against New Jersey's requirement that stored value card issuers obtain and maintain a record of the zip code of each stored value card purchaser. The zip-code collection requirement was to take effect on February 1, 2011. As a result, issuers of stored value cards (including gift cards and gift certificates) currently do not have to collect zip-code data from New Jersey purchasers. However, issuers should be prepared to collect zip codes or cease selling stored value card in New Jersey at least until the Third Circuit ultimately decides the matter. The temporary injunction comes on the heels of a January 14, 2011 district court opinion denying a similar motion for injunctive relief, and review by a full panel of the Third Circuit is pending.

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