NEW: Expiration Dates Allowed on Gift Cards Donated to Help Charities
Wednesday, June 20, 2012
Rhode Island has, during the past few years, acted laws to protect consumers who are recipients of gift cards and gift certificates, primarily by prohibiting expiration dates and service charges.
But there is a downside to those rules, specifically that merchants making contributions to charities for their fundraising events are hesitant to make those donations in the form of a gift card that never expires.
In the interest of supporting charity fundraising and encouraging more merchants to donate, the General Assembly has approved and the governor has signed into law legislation to exempt from the expiration date prohibition those gift cards or gift certificates given to a non-profit corporation or association for fundraising purposes.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe legislation (2012-H 7523A, 2012-S 2433A) were sponsored by Rep. Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly) and Sen. Roger A. Picard (D-Dist. 20, Cumberland, Woonsocket).
With the governor’s signature this week, the law takes immediate effect.
