Bill > A07916

This bill introduces the "New York gift certificate scam prevention act" to establish new regulations for gift certificate sales and prevent potential fraud. The legislation defines key terms like "gift certificate" and introduces a new category of "third-party gift certificate reseller" (a merchant who buys and resells gift cards without authorization from the original issuer). For in-person gift certificate sales, merchants must either conceal sensitive card numbers or use technology that prevents tampering and unauthorized redemption. Merchants must also train employees to identify and respond to gift certificate scams. Third-party gift certificate resellers are required to maintain detailed transaction records for at least three years, including information such as the buyer and seller's names, identification details, gift card 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 bill aims to protect consumers from potential gift certificate fraud by establishing stringent documentation and security requirements. The provisions will take effect on September 1, 2026, giving businesses time to adapt to the new regulations.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7916