Legal Question in Business Law in Massachusetts

Re: coupon expiration

I believe it is the opinion of the Abandoned Property Division of the State Treasurer�s office that if you are forfeiting a gift certificate the company must then turnover the funds to the State as abandoned property. You are not permitted to keep the money. I refer you to 33 M.R.S.A. Sections 1959, 1966 and 1970(1). In short, while the time limitation on the certificate may be enforceable against use of the gift certificate, it will not preclude the state from recovering the purchase price from the business. Once forfeited my client can reclaim the property from the state.

The Unclaimed Property Act provides in part: �The expiration �of a period of limitations on the owner�s right to receive or recover property, whether specified by contract, statute or court order does not preclude the property from being deemed abandoned or affect the duty to report to or deliver to or transfer property to the administrator as required by [the UPA].

I believe this is the reference you are looking for. You may check with the Attorney General's Office and the Abandonned Property division of the Treasurer's Office.

I hope this was helpful to you.

Re: coupon expiration

Gift certificates and gift cards, regardless of what they say on their face, do not expire by law for seven (7) years. As to the coupons, that is a gray area. If you have no paid anything for the coupons, my opinion would be that they expire pursuant to the date noted on the coupon. If you in fact paid for the coupons, my opinion would be that they would be subject to the same seven (7) year expiration period.