Bill > SB22

This bill amends California's existing consumer protection laws regarding gift certificates by increasing the cash redemption threshold from $10 to $15, expanding the definition of "gift certificate" to explicitly include electronic gift cards, and adding a specific exemption for gift certificates donated to nonprofit or charitable organizations. The legislation prohibits gift certificates from having expiration dates or service fees, with narrow exceptions for certain promotional, loyalty, and fundraising gift certificates. The bill also allows for a small dormancy fee on gift cards under specific conditions, such as the remaining value being $5 or less, the fee not exceeding $1 per month, and no activity for 24 consecutive months. A key provision requires clear disclosure of any potential fees on the gift card itself. The changes will become operative on April 1, 2026, providing businesses time to adapt to the new requirements. This bill aims to protect consumers by ensuring greater transparency and usability of gift certificates, preventing unexpected fees, and extending the circumstances under which gift certificates can be redeemed for cash.

Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB22