<p class=ldtitle>A BILL to amend and reenact §§ 59.1-530 and 59.1-531 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 59.1-531.1, relating to gift certificates; international transactions; fraud reports.</p>
Summary
HB689 revises Virginia’s gift certificate law to expand and clarify consumer protections for gift cards, store certificates, and general use prepaid cards. It updates the statutory definitions of “gift certificate,” “merchant,” “service fee,” and related terms, and it requires clearer disclosure of expiration dates and value-diminishing features on certificates issued by merchants in the Commonwealth. The bill also preserves the general prohibition on dormancy, inactivity, and service fees, with a limited exception for certificates distributed through award, loyalty, or promotional programs where no money or value was exchanged.
The bill adds a new requirement for international transactions: merchants may not sell a gift certificate as part of an international transaction unless they first place a 24-hour hold on activation. It also creates a new fraud-reporting provision directing local law enforcement, upon receiving a report of gift certificate fraud, to immediately communicate the report to the FBI’s Internet Crime Complaint Center. In practical terms, the measure would affect merchants that issue gift cards or prepaid cards, local law enforcement agencies handling fraud complaints, and consumers using gift certificates in Virginia or in cross-border transactions.
Impact
HB689 would amend §§ 59.1-530 and 59.1-531 of the Code of Virginia and add § 59.1-531.1, expanding the state’s gift certificate disclosure and anti-fee rules while adding a new fraud-reporting duty for local police. The bill would require merchants to provide more accessible expiration and value-diminution information, prohibit most recurring fees on gift certificates, and impose a 24-hour activation hold for gift certificates sold in international transactions. It would also create a statutory reporting pathway for suspected gift certificate fraud to the FBI’s Internet Crime Complaint Center.
Sentiment
The available legislative history suggests the bill was received cautiously or without strong opposition, as reflected by its continuation to the next session in the Labor and Commerce Committee by voice vote. Because there are no recorded floor votes or committee transcripts provided, the public record here does not show detailed debate, but the committee action indicates the measure remained under consideration rather than being advanced immediately. Overall, the bill appears to be framed as a consumer-protection and anti-fraud measure, which typically draws neutral to favorable treatment in committee settings.
Contention
The main points of potential contention are likely to be the new 24-hour activation hold for international transactions and the expanded compliance obligations for merchants issuing gift certificates or prepaid cards. Merchants and payment-card issuers may view the bill as adding operational burdens, especially for cross-border sales and for systems that must track disclosures and fee restrictions. Another possible issue is the breadth of the definition changes, particularly the inclusion of general use prepaid cards within the gift certificate framework, which could affect a wider range of retail and financial products than traditional store gift cards. No specific objections are documented in the provided materials, however.