Today,
the House Consumer Affairs Committee passed HB 552 (Stern) which
provides an incentive for restaurants and retailers to end the practice
of assessing fees or expiration dates on gift cards or gift
certificates. The bill now awaits action on the House floor.
The
Pennsylvania Public Interest Research Group (PennPIRG), a statewide
consumer advocacy group representing over 3,000 citizen members across
the state, applauds Representative Stern for his leadership in
protecting consumers on this issue, and urges other House members to
support the legislation as it reaches the floor.
Current
law requires that the value of any unused gift cards or certificates
escheat to the state Treasury as “unclaimed property” after five years,
or two years after the card’s expiration date, if one exists. Consumers
can seek their unclaimed property from the Treasury after that time
period, but may have difficulty if the retailer did not provide
identifying information on the consumer who held the card, such as a
name or address.
HB
552 would exempt businesses from escheating gift cards or certificates
if no expiration date exists, and if no fees are assessed on the card.
Under the legislation, if a retailer assesses fees or expiration dates,
current escheat rules would still apply.
PennPIRG
believes this legislation is a fair compromise that balances the
interests of the consumer and the business, and we urge the General
Assembly to pass HB 552.
For more information, contact Beth McConnell, PennPIRG Director at 215-732-3747 or mcconnell@pennpirg.org
