Legal Question in Consumer Law in California

Re: Expiration dates on Gift Certificates

CALIFORNIA CODES

CIVIL CODE

SECTION 1749.5

1749.5. (a) On or after January 1, 1997, it is unlawful for any

person or entity to sell a gift certificate to a purchaser containing

an expiration date. Any gift certificate sold after that date shall

be redeemable in cash for its cash value, or subject to replacement

with a new gift certificate at no cost to the purchaser or holder.

(b) A gift certificate sold without an expiration date is valid

until redeemed or replaced.

(c) This section shall not apply to any of the following gift

certificates issued on or after January 1, 1998, provided the

expiration date appears in capital letters in at least 10-point font

on the front of the gift certificate:

(1) Gift certificates that are distributed by the issuer to a

consumer pursuant to an awards, loyalty, or promotional program

without any money or other thing of value being given in exchange for

the gift certificate by the consumer.

(2) Gift certificates that are 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.

(3) Gift certificates that are issued for a food product.