Legal Question in Consumer Law in California

Gift certificate expiration

Can a reseller declare a prepaid gift certificate expired? I recently went to use a gift certificate for a video rental and they said it had expired a week before and was void.


Asked on 1/11/01, 10:02 pm

2 Answers from Attorneys

Jay Edelson KamberEdelson

Re: Gift certificate expiration

California law provides that, except in certain limited circumstances, it is illegal to put an expiration date on a gift certificate sold in or after 1997.

The circumstances where expiration dates are allowable include where gift certificates are

(1) given for free as part of a loyalty, awards, or promotional program,

(2) sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale; and

(3) issued for a food product.

Based on this law, a few dozen class action suits have already been brought in California -- some of which have already resulted in preliminary or final settlement agreements.

To know for sure whether a particular business is violating the law, I'd have to know the circumstances in which you came to receive the gift certificate (for example was it bought for you or did you receive it from the business for free?) as well as the state in which the gift certificate was issued.

If you provide me with this information, I should be able to give you a more definitive answer to your question. I may also be able to tell you whether that business has been sued and, if so, whether you are entitled to any sort of recovery pursuant to a settlement agreement or court judgment.

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Answered on 12/27/01, 5:22 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Gift certificate expiration

The give certificate is really a contract between the person who purchased it can store. In order for them to have an expiration it must have been in some way disclosed to the buyer and the buyer would have to agree to that.

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Answered on 1/29/01, 2:26 pm


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