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Category Archives: Gift Cards

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Consumer Financial Protection Bureau Issues Federal Preemption Determinations Regarding State Gift Card Laws

Posted in Gift Cards
The Consumer Financial Protection Bureau (CFPB) recently released its final determinations concerning whether Maine and Tennessee unclaimed property laws were preempted by the federal gift card law prohibiting expiration of gift card funds within five years of issuance. The decisions represented the first time that the CFPB used its authority to issue preemption determinations. More … Continue Reading

Groupon Reaches Settlement in Gift Card Lawsuits

Posted in Gift Cards
Last year, we discussed a class action lawsuit against Groupon alleging that the company’s deals violate California and federal gift card laws. The plaintiffs argued that Groupon’s deals constitute gift cards, and that the expiration on the deals violate federal and state laws that restrict expiration dates. Although Groupon denies they violated any law, the … Continue Reading

Court Approves Settlement in Gift Card Lawsuit

Posted in Gift Cards
This week, a California Superior Court approved a settlement agreement in a class-action lawsuit alleging that Amway Corporation and its related companies violated gift card laws. Amway’s gift cards included a notation instructing consumers to "redeem before" a certain date. The plaintiffs argued that this notation violated a California law that prohibits expiration dates on … Continue Reading

Recent Lawsuits Allege Groupon and LivingSocial Violate Gift Certificate Laws

Posted in Gift Cards, Social Media
Last month, consumers filed a class action lawsuit against Groupon, alleging that the company’s deals violate California and federal gift certificate laws. This month, a similar lawsuit was filed against LivingSocial, alleging that the company’s deals violate Washington and federal gift certificate laws. Approximately half the states have laws that either restrict or prohibit expiration … Continue Reading

Federal Reserve Issues Gift Card Rules

Posted in Gift Cards
This post was written by Gonzalo E. Mon and David J. Ervin. Last week, the Federal Reserve Board announced final rules that restrict the application of fees and expiration dates to store gift cards, gift certificates, and general-use prepaid cards. The rules are issued under Regulation E and become effective August 22, 2010. The rules … Continue Reading

Skype Settles Class Action Over Expiration of Credits

Posted in Gift Cards
Skype, a service that lets consumers make phone calls online, agreed to settle a class action that challenged the company’s policy of expiring credits that were older than 180 days. While Skype is free for consumers who call each other over the internet, there are fees associated with various additional features. To use these features, … Continue Reading