June 2023
Rhode Island companion bills S 759 and HB 5732 were signed by the Governor on June 20, 2023. The new law requires sellers of gift cards to display a “conspicuous notice, in a form prescribed by the department of business regulation” at or near where gift cards are displayed and at or near where the sale occurs.
The warning must (1) caution purchasers about prepaid card scams and (2) instruct the purchaser on what to do if they believe they may be a potential victim of such a scam. This warning is similar to New York’s scam notice requirement. Retailers who violate the law could be subject to a penalty of up to $250 per day per store.
The law is effective immediately. However, the Rhode Island Department of Business Regulation has not yet published the required form warning disclosure. We will keep in contact with the State and get the form disclosure to you as soon as it is available, but we do not think that the State can assess penalties against retailers who fail to post the warning sign until after the Department publishes the required form and gives retailers a reasonable period of time to get the warning posted in its stores.
While awaiting publication of the form disclosure, retailers may choose to use a form similar to New York’s template, available on the Division of Consumer Protection’s website, by clicking the “read More” button below, or another notice that meets the two requirements discussed above. Or, they may simply wait until the Department of Business Regulation publishes the required form.
If you have any questions or would like to discuss the information provided in this Client Alert in more detail, please do not hesitate to contact us:
Jamie Ryan, at jryan@baileycav.com or (614) 229-3247; or
Jameel Turner, at jturner@baileycav.com or (614) 229-3260; or
Joan Colleran, at jcolleran@baileycav.com or (614) 229-3220.