II 

112TH CONGRESS 

2D SESSION S. 3636 

To provide increased consumer protections for gift cards. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 26, 2012 

Mr. BLUMENTHAL introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide increased consumer protections for gift cards. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gift Card Consumer 

5 Protection Act of 2012’’. 

6 SEC. 2. EXPANDED DEFINITION OF GIFT CARDS TO IN7 CLUDE LOYALTY, AWARD, AND PRO8 MOTIONAL GIFT CARDS. 

9 Section 915(a)(2) of the Electronic Fund Transfer 

10 Act (15 U.S.C. 1693l–1(a)(2)) is amended— 

11 (1) in the paragraph heading, by striking ‘‘GEN12 ERAL USE’’ and inserting ‘‘GENERAL-USE’’; and 


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1 (2) in subparagraph (D), by striking clause (iii) 

2 and redesignating clauses (iv) through (vi) as 

3 clauses (iii) through (v), respectively. 

4 SEC. 3. BAN ON FEES FOR INACTIVITY ASSOCIATED WITH 

5 GIFT CARDS. 

6 Section 915(b) of the Electronic Fund Transfer Act 

7 (15 U.S.C. 1693l–1(b)) is amended to read as follows: 

8 ‘‘(b) PROHIBITION ON IMPOSITION OF FEES OR

9 CHARGES.—It shall be unlawful for any person to impose 

10 a dormancy fee, an inactivity charge or fee, or a service 

11 fee with respect to a gift certificate, store gift card, or 

12 general-use prepaid card.’’. 

13 SEC. 4. BAN ON EXPIRATION DATES ON GIFT CARDS. 

14 Section 915(c) of the Electronic Fund Transfer Act 

15 (15 U.S.C. 1693l–1(c)) is amended— 

16 (1) by striking ‘‘(1) IN GENERAL.—Except as 

17 provided in paragraph (2), it shall’’ and inserting 

18 ‘‘It shall’’; and 

19 (2) by striking paragraph (2). 

20 SEC. 5. CLERICAL AMENDMENT. 

21 Section 915(d)(2) of the Electronic Fund Transfer 

22 Act (15 U.S.C. 1693l–1(d)(2)) is amended by striking 

23 ‘‘shall’’. 


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1 SEC. 6. CONSUMER PROTECTIONS FOR WHEN A COMPANY 

2 THAT ISSUES GIFT CARDS FILES FOR BANK3 RUPTCY PROTECTION. 

4 (a) EFTA.—Section 915 of the Electronic Fund 

5 Transfer Act (15 U.S.C. 1693l–1) is amended— 

6 (1) by redesignating subsection (d) as sub7 section (e); and 

8 (2) by inserting after subsection (c) the fol9 lowing: 

10 ‘‘(d) REQUIREMENTS FOR A GIFT CERTIFICATE, 

11 STORE GIFT CARD, OR GENERAL-USE PREPAID CARD

12 SELLER OR ISSUER THAT HAS FILED FOR BANKRUPTCY

13 PROTECTION.—It shall be unlawful for any person— 

14 ‘‘(1) to sell or issue a gift certificate or store 

15 gift card if that person has filed for bankruptcy pro16 tection under title 11, United States Code; or 

17 ‘‘(2) to resell or reissue a gift certificate, store 

18 gift card, or general-use prepaid card, if— 

19 ‘‘(A) the original seller or issuer of the gift 

20 certificate, store gift card, or general-use pre21 paid card has filed for bankruptcy protection 

22 under title 11, United States Code; and 

23 ‘‘(B) 7 days or more have elapsed since 

24 that original seller or issuer filed for bank25 ruptcy protection under title 11, United States 

26 Code.’’. 


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1 (b) TITLE 11.—Title 11, United States Code, is 

2 amended— 

3 (1) in section 362(a), by striking paragraph (6) 

4 and inserting the following: 

5 ‘‘(6) any act to collect, assess, or recover a 

6 claim against the debtor that arose before the date 

7 of commencement of the case under this title, except 

8 that this paragraph shall not operate as a stay 

9 against the presentation or redemption of a gift cer10 tificate or store gift card at full value;’’; and 

11 (2) in section 363(c), by striking paragraph (1) 

12 and inserting the following: 

13 ‘‘(1) If the business of the debtor is authorized to 

14 be operated under section 721, 1108, 1203, 1204, or 1304 

15 of this title, and unless the court orders otherwise, the 

16 trustee— 

17 ‘‘(A) may enter into transactions, including the 

18 sale or lease of property of the estate, in the ordi19 nary course of business, without notice or a hearing; 

20 ‘‘(B) may use property of the estate in the ordi21 nary course of business, without notice or a hearing; 

22 and 


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1 ‘‘(C) shall honor a gift certificate or store gift 

2 card issued by the debtor at full value and treat the 

3 gift certificate or store gift card the same as cash.’’. 

Æ 


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