Several important new developments in the gift card industry over the past couple of weeks may have serious implications for companies that sell gift cards and similar instruments in New Jersey and other states, Venable partner Melissa Landau Steinman writes is a client alert released today.
At the end of March and the beginning of April, several of the biggest gift card sellers
announced that they would stop selling gift card products in New Jersey, on the
basis that they could not ensure that third parties would comply with the data
collection provisions of the New Jersey stored value card law.
On the other side of the country, in California, Groupon reached an $8.5 million settlement in multidistrict litigation alleging that the promotions company sold vouchers with unlawful expiration dates, in violation of the law of several states.
Steinman writes that sellers offering gift cards in New Jersey, or that offer “daily deal” vouchers in partnership with Groupon (or run similar promotions), should take note of these developments.