In 2008, the State of Michigan enacted legislation protecting gift card and gift certificate purchasers and recipients. If your business issues gift cards or gift certificates, here’s what you should know:
- A gift card for goods or services cannot expire less than five (5) years after it is issued. If an expiration date is written on the certificate, it must be at least 5 years after purchase. http://legislature.mi.gov/doc.aspx?mcl-445-903g
- A business may not charge service fees or inactivity fees to the gift card. http://legislature.mi.gov/doc.aspx?mcl-445-903f
- A business may not refuse to allow partial payment by a gift card or gift certificate.
- A business cannot refuse to accept a gift card or gift certificate during a sale, or even during a liquidation or closeout. http://legislature.mi.gov/doc.aspx?mcl-445-903e
- The issuing business must disclose any terms and conditions of use on:
- The card or certificate itself;
- On the packaging for the card or certificate; or
- Through a toll-free number provided with the card or certificate.
- Michigan laws on gift cards are stricter than federal laws, so most (if not all) companies doing business in Michigan will have to follow the Michigan laws.
- These regulations do not apply to gift cards issued by financial institutions (such as American Express).
For additional business resources or any other legal assistance you or your business might need, Attorney Melissa Demorest can be reached via email melissa@demolaw.com or via telephone: 248-723-5500.
