Gift cards and gift certificates are a convenient present for the holidays, so the New York State Division of Consumer Protection wants to remind New Yorkers that under New York State law, gift cards or gift certificates purchased on or after December 10, 2022, remain valid for nine years from the date of purchase. And when the remaining value of the gift card or gift certificate is less than five dollars, the recipient can opt to receive cash for the balance. Additionally, the law explicitly prohibits any “activation fees, retroactive fees, redemption fees, service fees, dormancy fees, latency fees, administrative fees, handling fees, access fees, periodic fees, renewal fees, re-loading fees, or any other fee of any kind.” There is one exemption to the law, which is that an issuer of a gift card or gift certificate that may be used at multiple merchants may charge a one-time fee for activation costs, which may not exceed $9.
In New Yok State, a gift card or gift certificate’s purchase date determines what, if any, rights exist for consumers. Based on the purchase date, consumers can expect the following legal protections: For gift cards and gift certificates purchased between September 21, 2004, and August 21, 2010, there is no law requiring a minimum expiration term and a monthly inactivity service fee may be assessed monthly after the 12th month of inactivity. Those purchased between August 22, 2010, and December 24, 2016, cannot expire before five years from the date of purchase, a one-time inactivity fee may be assessed after the 12th month of inactivity. Gift cards purchased between December 25, 2016, and December 9, 2022, cannot expire before five years from the date of purchase. A monthly inactivity service fee may be assessed after the 24th month of inactivity, but if the gift card is presented within three years of the purchase date, any activity fees assessed will be waived and the gift card will be replenished to its value prior to the fees. Gift cards purchased on or after December 10, 2022, cannot expire before nine years from the date of purchase and inactivity fees are prohibited.
Consumers having difficulty redeeming gift cards are encouraged to file a complaint with the New York State Division of Consumer Protection at https://dos.ny.gov/file-consumer-complaint. The Division of Consumer Protection provides voluntary mediation, between the consumer and business, when the consumer has been unsuccessful at reaching a resolution on their own.
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