Gift certificates.

Existing law prohibits the sale of any gift certificate that contains an expiration date or service fee. Existing law excepts from those provisions specified gift certificates, including, but not limited to, those that are distributed by the issuer to a consumer pursuant to an award, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer, as specified. Gift certificate is defined for these purposes to include gift cards, but does not include any gift card usable with multiple sellers of goods or services, as specified. This bill would prohibit a retailer from advertising as a gift certificate or gift card any promotional item, award, or loyalty that does not comply with the laws pertaining to gift certificates. The bill would require any of those items resembling a gift certificate or gift card to include on the front of the item the terms and conditions of use as well as a notice in 10-point boldface type that the item is not a gift certificate or gift card. The bill also would prohibit the sale of a gift card usable with multiple sellers of goods or services that requires a service fee, including, but not limited to, a service fee for activation, application, installation, or dormancy.