Retailers and issuers of gift cards in New Jersey recently received welcome news: they no longer have to worry about looming consumer data collection requirements. Under existing law, beginning in July 2016, gift card (also known as “stored value card” or SVC) retailers and issuers operating in New Jersey would have been obligated to collect the names and addresses, and maintain at least the ZIP codes, of all SVC purchasers and owners. On February 5, 2015, Governor Chris Christie signed into law amendments to the state’s unclaimed property law that eliminate the consumer information collection requirements. SVC issuers and retailers should review S.B. 2235 and, if necessary, amend card terms and conditions and update internal consumer data collection policies to avoid exposure to increased unclaimed property obligations.
In 2010, New Jersey passed a law requiring that unredeemed SVC balances escheat to the state after two years of inactivity. To tie SVCs to the state, this legislation also required that all SVC retailers and issuers collect the names and addresses and, at a minimum, maintain a record of the ZIP codes, of all SVC purchasers. The legislation was controversial from the beginning. It was challenged by retailers and merchant associations that doubted the intended revenue-generating impact on New Jersey and decried the administrative burdens of compliance for businesses operating in the state.
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