2013 Kentucky Revised Statutes
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367.890 "Gift card" defined -- Earliest permissible expiration dates -- Extra
charges and fees prohibited -- Liability of violator.
"Gift card," as used in this section, means a certificate, electronic card, or other
medium issued by a merchant that evidences the giving of consideration in
exchange for the right to redeem the certificate, electronic card, or other
medium for goods, food, services, credit, or money of at least an equal value.
"Gift card" includes any electronic card issued by a merchant with a monetary
value where the issuer has received payment for the full monetary value for the
future purchase or delivery of goods or services and any certificate issued by a
merchant where the issuer has received payment for the full monetary face
value of the certificate for the future purchase or delivery of goods and
services. "Gift card" does not include a prepaid calling card used to make
telephone calls, or a general-use, prepaid card or other electronic payment
device that is issued by a bank or other financial institution that is usable at
multiple, unaffiliated merchants, or at automated teller machines, or both, or a
gift card issued by a merchant for a promotional program for which no separate
monetary consideration is given.
Subject to subsection (5) of this section, no person or entity shall sell a gift card
containing an expiration date that is less than one (1) year after the date the
gift card is issued.
No person or entity shall charge service charges or fees relative to that gift
card, including dormancy fees, latency fees, or administrative fees, that have
the effect of reducing the total amount for which the holder of the gift card may
redeem the gift card until the expiration date on the card has expired.
A gift card sold without an expiration date printed on the front or back of the
card is valid until redeemed or replaced with a new gift card.
If the expiration date on the card is not less than one hundred twenty (120)
days from the date of issue, subsection (2) of this section does not apply to any
of the following gift cards:
(a) Sold below face value at a volume discount to employers or to nonprofit
and charitable organizations for fundraising purposes;
(b) Sold by a nonprofit or charitable organization for fundraising purposes; or
(c) Given by an employer to an employee, if use of the card is limited to the
employer's business establishment. As used in this paragraph, business
establishment may include a group of merchants that are affiliated with
that business establishment.
Any person who violates subsection (3) of this section is liable to the holder of
the card for any amount that the redemption value of the gift card was reduced,
any court costs incurred, and reasonable attorney's fees.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 54, sec. 1, effective July 15, 2010. -- Created
2006 Ky. Acts ch. 28, sec. 1, effective July 12, 2006.
CHAPTER 367 - CONSUMER PROTECTION
367.890 "Gift card" defined -- Earliest permissible expiration dates -- Extra charges and fees prohibited -- Liability of violator.
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