Bill > SB2014

This bill creates the Gift Card Scam Prevention Act, which aims to protect consumers from potential fraud when purchasing open-loop gift cards (prepaid cards that can be used at multiple merchants, including those usable at ATMs). The legislation requires merchants selling these cards to display clear warnings and use secure packaging that prevents tampering and conceals activation codes for in-person sales, and provide similar warnings for online sales. Third-party gift card resellers must maintain detailed records of each transaction, including seller and purchaser information, card details, and transaction specifics, for at least three years and make these records available to law enforcement. The bill provides some exceptions for certain types of gift cards, such as chip-enabled numberless cards or cards sold exclusively by a single merchant or affiliated merchants. The Attorney General is tasked with enforcing the law, creating public awareness resources about gift card fraud, and can impose civil penalties of up to $5,000 for each violation. The law is set to take effect on January 1, 2026, and gives the Attorney General authority to adopt rules for implementation, with the ultimate goal of preventing gift card scams and protecting consumers from potential financial fraud.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2014&GAID=18&DocTypeID=SB&SessionID=114&GA=104