§ 2701. Definitions
As used in this chapter:
(1) “Account” means a demand deposit or share draft (checking) account, savings account,
or other comparable consumer asset account (other than an occasional or incidental
credit balance in a credit plan) regularly maintained by the consumer at a financial
institution or at a credit union.
(2) “Financial institution” means an institution as defined in subdivision 11101(32) of this title.
(3) “Gift certificate” means a record evidencing a promise made for consideration by the
seller or issuer of the record that money, goods, or services will be provided to
the holder of the record for the value shown in the record. A “gift certificate” includes
a record that contains a microprocessor chip, magnetic strip, or other means for the
storage of information that is prefunded and for which the value is decremented upon
each use; a gift card; an electronic gift card; a prepaid access card or certificate;
a store card; or a similar record or card. A gift certificate does not include an
access device such as a debit card, code, or other means of access to a consumer’s
account regularly maintained at a financial institution or credit union that may be
used by the consumer to access the funds in his or her account to initiate a withdrawal
or to initiate an electronic funds transfer from the consumer’s account.
(4) “Loyalty, award, or promotional gift certificate” means a gift certificate that is
issued on a prepaid basis primarily for personal, family, or household purposes to
a consumer in connection with a loyalty, award, or promotional program and that is
redeemable upon presentation to one or more merchants for goods or services or that
is usable at automated teller machines.
(5) “Paid value” means the value of any money or other thing of value given in exchange
for a gift certificate.
(6) “Promotional value” means any value shown on a gift certificate in excess of the paid
value of the gift certificate. (Added 2005, No. 39, § 1; amended 2011, No. 136 (Adj. Sess.), § 7, eff. May 18, 2012; 2019, No. 20, § 64.)
§ 2702. Expiration date
The paid value of a gift certificate sold or offered to be sold shall be valid for
not less than five years after its date of issuance or after the date funds were last
loaded onto the gift certificate, whichever is later. The date of issuance and the
expiration date shall be clearly identified on its face, or, if an electronic card
with a banked dollar value, clearly printed upon a sales receipt transferred to the
purchaser of the electronic card upon the completed transaction, or otherwise made
available to the purchaser or holder of the electronic card through means of an internet
site or a toll-free information telephone line. A gift certificate not clearly marked
with an expiration date or for which the expiration date is not otherwise made available
as provided in this section shall be deemed to have no expiration date. Following
the expiration date of the gift certificate, the unused portion of the paid value
of the gift certificate shall be returned to the holder of the gift certificate, if
requested. (Added 2005, No. 39, § 1; amended 2011, No. 136 (Adj. Sess.), § 7, eff. May 18, 2012.)
§ 2702a. Loyalty, award, or promotional gift certificate
A loyalty, award, or promotional gift certificate shall clearly and legibly set forth
the following disclosures, as applicable:
(1) a statement indicating that the gift certificate is issued for loyalty, award, or
promotional purposes, which shall be included on the front of the gift certificate;
(2) the expiration date for both the paid value of the gift certificate, if any, and the
promotional value of the gift certificate, if any, which shall be included on the
front of the gift certificate;
(3) the amount of any fees that may be imposed in connection with the gift certificate
and the conditions under which they may be imposed, which shall be provided on or
with the gift certificate; and
(4) if any fee is assessed against the gift certificate, a toll-free telephone number
and, if one is maintained, a website address that a consumer may use to obtain fee
information, which shall be included on the gift certificate. (Added 2011, No. 136 (Adj. Sess.), § 7, eff. May 18, 2012.)
§ 2703. Prohibited fees
(a) Dormancy fees, latency fees, issuance fees, redemption fees, or any other administrative
fees or service charges in connection with a gift certificate are prohibited.
(b) Notwithstanding subsection (a) of this section, a money transmitter licensed under
chapter 79 of this title, financial institution, or credit union may charge a one-time
fee upon the issuance of a prepaid access card that is reasonably related to the cost
to the issuer of issuing the card, provided that in no event shall the fee exceed
$10.00. (Added 2005, No. 39, § 1; amended 2019, No. 20, § 65; 2019, No. 103 (Adj. Sess.), § 11.)
§ 2704. Redemption of gift certificate for cash
If the remaining value of a gift certificate is less than $1.00, the gift certificate
shall be redeemable in cash for its remaining value upon the demand of the holder
of the gift certificate. (Added 2005, No. 39, § 1.)
§ 2705. Balance inquiry
The issuer of the gift certificate, at the holder’s request, shall inform the holder
of the unused balance remaining on the gift certificate and the expiration date of
the gift certificate. (Added 2005, No. 39, § 1.)
§ 2706. Penalty
(a) The Commissioner may impose an administrative penalty of not more than $1,000.00 per
violation upon any person who violates any provision of this chapter, any applicable
rule, or any order issued by the Commissioner, plus the State’s costs and expenses
for the investigation and prosecution of the matter, including attorney’s fees.
(b) The Commissioner may order any person to make restitution to any person as a result
of a violation of this chapter.
(c) Any gift certificate that contains any provision in violation of this chapter is contrary
to public policy, and such provision is void and unenforceable against the holder
of the gift certificate.
(d) The powers vested in the Commissioner by this chapter shall be in addition to any
other powers of the Commissioner to enforce any penalties, fines, or forfeitures authorized
by law.
(e) The powers vested in the Commissioner by this chapter shall be in addition to any
other powers or rights of consumers or the Attorney General or others under any other
applicable law or rule, including without limitation the Vermont Consumer Protection
Act and any applicable rules issued in connection therewith. (Added 2005, No. 39, § 1; amended 2011, No. 109 (Adj. Sess.), § 3, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1b, eff. May 18, 2012.)
§ 2707. Exemption
Except as provided in this section, the provisions of this chapter shall not apply
to the following:
(1) a loyalty, award, or promotional gift certificate where no money or other thing of
value is given in exchange for the gift certificate, provided that the gift certificate
complies with section 2702a of this title;
(2) the promotional value of a loyalty, award, or promotional gift certificate issued
in exchange for paid value, provided that the gift certificate complies with sections
2702 and 2702a of this title;
(3) a gift certificate donated to a charitable organization and used for fund-raising
activities of a charitable organization, without any money or other thing of value
being given in exchange for the gift certificate by the charitable organization, provided
that the expiration date is clearly and legibly printed on the gift certificate;
(4) prepaid calling cards issued solely to provide an access number and authorization
code for prepaid calling services;
(5) a season pass, a discount ski card, or a record sold for admission to any seasonal
recreational activity; or
(6) a payroll card account issued pursuant to and in full compliance with 21 V.S.A. § 342(c). (Added 2005, No. 39, § 1; amended 2009, No. 115 (Adj. Sess.), § 2, eff. May 21, 2010; 2011, No. 136 (Adj. Sess.), § 7, eff. May 18, 2012.)
§ 2708. Investigations and complaints; powers of Commissioner
If the Commissioner has reason to believe that any person has violated any of the
provisions of this chapter, the Commissioner may make such investigation as the Commissioner
shall deem necessary, and, to the extent necessary for this purpose, the Commissioner’s
authorized representative may examine such person and shall have the power to compel
the production of all relevant books, records, and documents. (Added 2005, No. 39, § 1.)
§ 2709. Vermont Consumer Protection Act
(a) A violation of this chapter shall be deemed also a violation of the Vermont Consumer
Protection Act, 9 V.S.A. chapter 63, provided that the Commissioner’s determinations concerning the interpretation and
administration of the provisions of this chapter and any rules adopted under this
chapter shall carry a presumption of validity as to financial institutions, credit
unions, and all persons licensed or required to be licensed under this title.
(b) A consumer may bring a private action under this chapter or under 9 V.S.A. chapter 63 for any violation of this chapter. (Added 2005, No. 39, § 1; amended 2011, No. 109 (Adj. Sess.), § 3, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1b, eff. May 18, 2012.)
§ 2710. Enforcement
(a) The Commissioner may enforce compliance with the requirements of this chapter with
respect to financial institutions as defined in subdivision 11101(32) of this title, credit unions, and all persons and entities licensed or required to be licensed
under this title.
(b) The Attorney General shall cooperate and consult with the Commissioner prior to the
commencement of any investigation or enforcement action with respect to any person
or entity described in subsection (a) of this section.
(c) Nothing contained in subsection (a) or (b) of this section shall prohibit the Commissioner
and the Attorney General from bringing a joint enforcement action against any person
or entity described in subsection (a) for a violation of this chapter. (Added 2005, No. 39, § 1.)
§ 2711. Rules
(a) The Commissioner may adopt such rules as are necessary to carry out the purposes of
this chapter with respect to financial institutions, credit unions, and all persons
and entities licensed or required to be licensed under this title.
(b) The Attorney General may adopt such rules as are necessary to carry out the purposes
of this chapter with respect to all persons and entities other than financial institutions,
credit unions, and all persons or entities licensed or required to be licensed under
this title. (Added 2005, No. 39, § 1.)