Bill > SB1371

This bill modifies Virginia's existing law regarding gift certificates by prohibiting merchants from imposing dormancy fees, inactivity charges, or service fees on gift certificates with few exceptions. Specifically, the bill defines key terms like "dormancy fee" (a charge for non-use of a gift certificate), "general use prepaid card" (a reloadable card usable at multiple unaffiliated merchants or ATMs), and "service fee" (a periodic charge for holding or using a gift certificate). The legislation mandates that gift certificates cannot have expiration dates earlier than five years after issuance and requires that any expiration date or potential value reduction be clearly disclosed on the certificate through a phone number or internet address. The only circumstance where fees can be charged is if the gift certificate is distributed through an award, loyalty, or promotional program where no additional money or value is exchanged. This bill aims to protect consumers by ensuring gift certificates maintain their full value for a reasonable period and preventing merchants from implementing punitive fees that could diminish the certificate's worth.