An Act to amend 165.25 (4) (ar); to create 100.56 of the statutes; Relating to: terms and conditions of gift certificates, gift cards, and other gift obligations and providing a penalty.
Summary
SB900 creates a new state law governing “gift obligations,” defined broadly to include gift certificates, gift cards, and similar instruments marketed as gifts. The bill would prohibit the sale of gift obligations with expiration dates earlier than five years after sale, or five years after the last reload for reloadable cards. It also restricts dormancy, inactivity, and service fees unless the card has had no activity for one year, the fee terms are clearly disclosed on the card, and no more than one such fee is charged in a month.
The bill is framed as aligning Wisconsin law with federal requirements for gift cards and similar products. It applies prospectively only to gift obligations sold on or after the effective date. In addition to setting substantive consumer-protection rules, the bill amends the statute governing the Department of Justice’s legal services for the Department of Agriculture, Trade and Consumer Protection so that enforcement of the new section is included among the covered duties.
Impact
SB900 would add a new consumer-protection statute, s. 100.56, and expand the list of laws the Department of Justice supports for enforcement by DATCP. It would give DATCP and district attorneys authority to seek injunctions and forfeitures of $100 to $10,000 per violation, and it would create a private right of action allowing affected consumers to recover the greater of twice their pecuniary loss or $200 per violation, plus costs and attorney fees. The bill would affect retailers, issuers, and other sellers of gift cards and similar stored-value products by limiting expiration dates and fee practices.
Sentiment
The available record shows no committee transcript or vote detail, so there is no documented floor or committee debate to gauge detailed sentiment. Based on the bill text, the measure appears consumer-protection oriented and intended to standardize Wisconsin law with federal gift-card rules. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite being introduced with multiple cosponsors.
Contention
The main policy issues likely concern the balance between consumer protections and business flexibility. Supporters would favor longer expiration periods, clearer fee disclosures, and limits on fee erosion of card value, while issuers and retailers may object to compliance costs, litigation exposure, and the private right of action. The bill’s enforcement provisions are notable because they allow both government enforcement and consumer lawsuits, which can be a point of contention in consumer-finance legislation.
Crossfiled
An Act to amend 165.25 (4) (ar); to create 100.56 of the statutes; Relating to: terms and conditions of gift certificates, gift cards, and other gift obligations and providing a penalty.