Monday, March 08, 2010

Gift Certificate Law

From my weekly (AM) radio segment titled "Legal Minute"

During those seasons when holiday shopping is in full swing, it’s helpful to know what gift certificates you get or give are valid. California is one of the states regulating aspects of gift certificate sales. California requires sellers of gift certificates to honor them in the event of bankruptcy. The California law does not permit gift certificates to have an expiration date unless certain conditions are met. The gift certificate must have an expiration date printed on its face in at least 10-point font. In California, a certificate without an expiration date remains valid until redeemed or replaced and may be redeemable in cash. Certain gift certificates are exempt from these requirements, such as gift certificates distributed as part of an awards, loyalty, or promotional program without anything of value being given in exchange, and those sold below face value at a volume discount to an employer or nonprofit charity for fundraising purposes. Also, California does not require a seller to replace a lost or stolen certificate. Happy Shopping!