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Hochul signs legislation to protect consumers from potential prepaid gift card scams


Fri, Dec 23rd 2022 12:15 pm

Legislation requires businesses to post notice alerting customers about gift card scams

Gov. Kathy Hochul has signed legislation (A.266A/S.145B) designed to protect consumers from scammers by requiring businesses give notice of potential scams when selling gift cards.

Her team said, “This bill underscores Gov. Hochul's commitment to protecting New Yorkers against a form of theft that has become increasingly common.”

Hochul said, "During the holiday season and throughout the year, consumers deserve to be protected from scams that target their hard-earned money. By signing this legislation, we are taking the necessary steps to ensure New Yorkers remain vigilant of and protected from deceitful attempts to steal their money in the form of gift cards."

Legislation A.266A/S.145B amends the general business law to require that retailers selling gift cards also post a notice cautioning customers of gift card scams, and providing information on what to do if they believe they may be a victim of such a scam.

New York State Sen. Kevin Thomas said, "The increasing number of scammers using gift cards as a mechanism to steal from consumers is steadily growing. I thank Gov. Hochul for signing my legislation requiring businesses to display in-store warnings alerting consumers of potential gift card scams. Taking these steps will alert customers to the prevalence of these scams, provide greater protections to New Yorkers and save potential victims from financial fraud."

Assembly member Amy Paulin said, "Gift cards are an easy way for scammers to steal from people because they can't be traced. Education by alerting people of the existence of the problem is key. Many people might not know they are purchasing gift cards at the behest of scammers. I commend Gov. Hochul for taking this step to help protect New Yorkers from gift card scams."

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