File #: Int 1078-2024    Version: * Name: Prohibiting the sale of certain gift cards that lack chip-and-PIN technology.
Type: Introduction Status: Committee
Committee: Committee on Consumer and Worker Protection
On agenda: 10/10/2024
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to prohibiting the sale of certain gift cards that lack chip-and-PIN technology
Sponsors: Linda Lee
Council Member Sponsors: 1
Summary: This bill would prohibit any person from selling or offering for sale a physical gift card that is usable at multiple affiliated merchants or at multiple unaffiliated merchants unless it is equipped with chip-and-PIN technology. Any person who violates this prohibition would be liable for a civil penalty of not less than $500 nor greater than $1,000 that would be recoverable in a proceeding before the Office of Administrative Trials and Hearings.
Indexes: Agency Rule-making Required
Attachments: 1. Summary of Int. No. 1078, 2. Int. No. 1078, 3. October 10, 2024 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 10-10-24

Int. No. 1078

 

By Council Member Lee

 

A Local Law to amend the administrative code of the city of New York, in relation to prohibiting the sale of certain gift cards that lack chip-and-PIN technology

 

Be it enacted by the Council as follows:

 

Section 1. Chapter 4 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 15 to read as follows:

SUBCHAPTER 15

GIFT CARDS

§ 20-699.12 Sale of gift cards. a. Definitions. For purposes of this section, the following terms have the following meanings:

Chip-and-PIN technology. The term “chip-and-PIN technology” means technology involving an embedded microchip that holds payment information and is used to make a purchase, and that requires a personal identification number to be entered for a purchase to be complete.

Gift card. The term “gift card” means a physical payment card that (i) is marketed or labeled as intended for gifting purposes; (ii) is usable at multiple affiliated merchants or service providers that share the same name, mark, or logo, at multiple unaffiliated merchants or service providers, or at automated teller machines; (iii) is issued in a specified amount; (iv) may or may not be increased in value or reloaded; (v) is purchased on a prepaid basis for the future purchase of goods or services, or for use at automated teller machines; and (vi) is honored by any such merchant or service provider upon presentation for the purchase of goods or services, or honored at automated teller machines.

Stock-keeping unit. The term “stock-keeping unit” means each group of items offered for sale of the same brand name, quantity of contents, retail price, and variety.

b. No person shall sell, or offer for sale, a gift card unless it is equipped with chip-and-PIN technology.

c. Any person who violates subdivision b of this section or any rule promulgated thereunder is liable for a civil penalty of not less than $500 nor more than $1,000 that is recoverable in a proceeding before the office of administrative trials and hearings pursuant to chapter 45-A of the charter.

d. Each failure to comply with subdivision b of this section or any rule promulgated thereunder with respect to any one stock-keeping unit constitutes a separate violation.

§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner of consumer and worker protection shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.PS

LS #15890

8/8/2024 5:30 PM