Bill > S00704

This bill enacts the "New York gift certificate scam prevention act," which introduces new regulations for the sale and handling of gift certificates, particularly focusing on preventing fraud. The bill expands the definition of gift certificates to include a new category called "third-party gift certificate resellers," who are merchants selling open loop gift certificates without direct authorization from the issuing business. For in-person gift certificate sales, merchants must now conceal sensitive numbers like card or PIN numbers, or use technology that prevents tampering and unauthorized redemption. The bill mandates that merchants who sell gift certificates provide employee training on identifying and preventing gift certificate scams. Furthermore, third-party gift certificate resellers are required to maintain detailed transaction records for a minimum of three years, including information such as the buyer and seller's names, identification details, gift certificate specifics, transaction prices, and consumer signatures. These records must be chronologically maintained, either in ink or through a secure digital system, and must be made available for law enforcement inspection. The act is set to take effect on September 1, 2026, giving businesses ample time to prepare for and implement these new requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S704