GIFT CARD SCAM PREVENTION
SB2014 creates the Gift Card Scam Prevention Act, a new Illinois law aimed at reducing fraud involving open-loop gift cards. The bill requires merchants selling these cards in person to post a notice, use secure packaging that conceals activation and redemption codes, and include a tamper-warning. For online sales, merchants must display a notice before the sale is completed. The bill also exempts certain chip-enabled, numberless cards and cards sold only for use at a merchant’s own stores or affiliated stores when they are kept in employee-only locations.
The bill further regulates third-party gift card resellers that buy or sell open-loop gift cards in Illinois. These resellers must keep detailed transaction records for at least three years, including identifying information about the parties, card details, and sale price, and must make those records and any cards in their possession available to law enforcement during business hours or other reasonable times. The Attorney General is assigned enforcement authority, must publish consumer education materials about gift card scams, and may adopt rules to administer the Act. Violations can result in civil penalties of up to $5,000 per violation, with collected funds deposited into the Debt Settlement Consumer Protection Fund.
SB2014 would add a new consumer-protection regulatory framework to Illinois law focused specifically on open-loop gift cards, affecting retailers, online sellers, and third-party gift card resellers. It imposes packaging, notice, recordkeeping, inspection, and disclosure requirements that do not currently exist in the bill text, and it creates a new enforcement role for the Attorney General along with civil penalties and rulemaking authority. The Act would take effect January 1, 2026, if enacted.
Based on the bill text and the absence of committee transcripts or recorded votes, the available record suggests a generally protective, anti-fraud policy approach rather than a contested partisan measure. The bill is framed as a consumer-safety and scam-prevention effort, with emphasis on public education, law-enforcement access, and merchant safeguards. No formal vote history or hearing testimony is provided, so there is no documented opposition or support in the supplied materials.
The main points of potential contention are the compliance burdens placed on merchants and third-party resellers, especially the packaging, notice, and three-year recordkeeping requirements. Privacy concerns may also arise from the mandated collection of personal identifying information, including names, addresses, and identification numbers of buyers and sellers, plus law-enforcement inspection access. At the same time, supporters would likely emphasize the need to deter gift card tampering and fraud and to give consumers clearer warnings and recourse.