Effective January 1, 2005, two new laws in the State of Illinois place additional requirements on companies that issue gift certificates or gift cards. The net effect of these two laws is to discourage companies issuing gift certificates or gift cards from charging fees on the certificates or cards and from setting expiration dates for them.
The first new law requires certain statements to appear on the gift certificate or card if the gift certificate or card has an expiration date or is subject to fees. The second new law requires sellers of gift certificates or cards to comply with the Uniform Disposition of Unclaimed Property Act for certificates or cards that remain unclaimed when there is an expiration date, expiration period, or post-sale fees.
Andy Goldstein, a partner with Freeborn & Peters LLP, has summarized the new laws and their effects in a recently published "IP and Marketing Update." For additional information, please contact Mr. Goldstein directly at (312) 360-6438.