text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Fair Gift Card Act of 2009''.
  
  SEC. 2. DEFINITIONS.
  
      In this Act:
              (1) Debit card.--The term ``debit card'' has the meaning 
          given the term in section 603(r)(3) of the Fair Credit 
          Reporting Act (15 U.S.C. 1681a(r)(3)).
              (2) Dormancy fee; inactivity charge or fee.--The terms 
          ``dormancy fee'' and ``inactivity charge or fee'' mean a fee, 
          charge, or penalty for non-use or inactivity of a gift 
          certificate, store gift card, or general-use prepaid card.
              (3) Financial institution.--The term ``financial 
          institution'' has the meaning given the term in section 603(t) 
          of the Fair Credit Reporting Act (15 U.S.C. 1681a(t)).
              (4) General-use prepaid card, gift certificate, and store 
          gift card.--
                      (A) General-use prepaid card.--The term ``general-
                  use prepaid card'' means a card or other electronic 
                  payment device issued by a financial institution or 
                  licensed money transmitter that is--
                              (i) redeemable at multiple, unaffiliated 
                          merchants or service providers, or automated 
                          teller machines;
                              (ii) issued in a requested amount whether 
                          or not that amount may, at the option of the 
                          issuer, be increased in value or reloaded if 
                          requested by the holder;
                              (iii) purchased or loaded on a prepaid 
                          basis; and
                              (iv) honored, upon presentation, by 
                          merchants for goods or services, or at 
                          automated teller machines.
                      (B) Gift certificate.--The term ``gift 
                  certificate'' means a written promise that is--
                              (i) redeemable at a single merchant or an 
                          affiliated group of merchants that share the 
                          same name, mark, or logo;
                              (ii) issued in a specified amount and 
                          cannot be increased;
                              (iii) purchased on a prepaid basis in 
                          exchange for payment; and
                              (iv) honored upon presentation by such 
                          single merchant or affiliated group of 
                          merchants for goods or services.
                      (C) Store gift card.--The term ``store gift card'' 
                  means a plastic card or other electronic payment device 
                  that is--
                              (i) redeemable at a single merchant or an 
                          affiliated group of merchants that share the 
                          same name, mark, or logo;
                              (ii) issued in a specified amount and may 
                          or may not be increased in value or reloaded;
                              (iii) purchased on a prepaid basis in 
                          exchange for payment; and
                              (iv) honored upon presentation by such 
                          single merchant or affiliated group of 
                          merchants for goods or services.
                      (D) Exclusions.--The terms ``general-use prepaid 
                  card'', ``gift certificate'', and ``store gift card'' 
                  do not include a written promise, plastic card, or 
                  other electronic device that is--
                              (i) used solely for telephone services; or
                              (ii) associated with a demand deposit, 
                          checking, savings, or similar account that--
                                      (I) is in the name of an individual 
                                  or on behalf of an individual at a bank 
                                  or financial institution; and
                                      (II) provides payment solely by 
                                  debiting such account.
              (5) Licensed money transmitter.--The term ``licensed money 
          transmitter'' means a person who sells or issues payment 
          instruments or engages in the business of receiving money for 
          transmission or transmitting money within the United States or 
          to locations abroad by any and all means, including payment 
          instrument, wire, facsimile, or electronic transfer.
              (6) Service fee.--The term ``service fee'' means a periodic 
          fee, charge, or penalty for holding or use of a gift 
          certificate, store gift card, or general-use prepaid card.
  
  SEC. 3. UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING GIFT CARDS.
  
      (a) Prohibition on Imposition of Fees or Charges.--
              (1) In general.--Except as provided under paragraphs (2) 
          through (4), it shall be unlawful for any person to impose, 
          with respect to a gift certificate, store gift card, or 
          general-use prepaid card, a dormancy fee, inactivity charge or 
          fee, or a service fee.
              (2) Exception.--A dormancy fee, inactivity charge or fee, 
          or service fee may be charged with respect to a gift 
          certificate, store gift card, or general-use prepaid card if--
                      (A) such certificate or card has a remaining value 
                  of $5 or less at the time such charge or fee is 
                  assessed;
                      (B) such charge or fee does not exceed $1;
                      (C)(i) there has been no activity with respect to 
                  the certificate or card in the 24-month period ending 
                  on the date the charge or fee is imposed; and
                      (ii) the certificate or card was issued more than 
                  24 months before such date;
                      (D) the holder of the certificate or card may 
                  reload or add value to the certificate or card; and
                      (E) the disclosure requirements of paragraph (3) 
                  are met.
              (3) Disclosure requirements.--The disclosure requirements 
          of this paragraph are met if--
                      (A) the gift certificate, store gift card, or 
                  general-use prepaid card clearly and conspicuously 
                  states in at least 10-point type--
                              (i) that a dormancy fee, inactivity charge 
                          or fee, or service fee may be charged;
                              (ii) the amount of such fee or charge;
                              (iii) how often such fee or charge may be 
                          assessed; and
                              (iv) that such fee or charge may be 
                          assessed for inactivity; and
                      (B) the issuer of such certificate or card informs 
                  the purchaser of such charge or fee before such 
                  certificate or card is purchased, regardless of whether 
                  the certificate or card is purchased in person, over 
                  the Internet, or by telephone.
              (4) Exclusion.--The prohibition under paragraph (1) shall 
          not apply to gift certificates that--
                      (A)(i) are distributed pursuant to an award, 
                  loyalty, or promotional program; and
                      (ii) with respect to which there is no money or 
                  other value exchanged; or
                      (B)(i) expire not later than 30 days after the date 
                  they are sold; and
                      (ii) are sold below the face value of the 
                  certificate to an employer or to a nonprofit or 
                  charitable organization for fund-raising purposes.
      (b) Prohibition on Sale of Gift Cards With Expiration Dates.--
              (1) In general.--Except as provided under paragraph (2), it 
          shall be unlawful for any person to sell or issue a gift 
          certificate, store gift card, or general-use prepaid card that 
          is subject to an expiration date.
              (2) Exceptions.--A gift certificate, store gift card, or 
          general-use prepaid card may contain an expiration date if--
                      (A) the expiration date is not less than 5 years 
                  after the date on which the card is purchased; and
                      (B) the terms of expiration are prominently 
                  disclosed in all capital letters that are at least 10-
                  point type.
  
  SEC. 4. RELATION TO STATE LAWS.
  
      This Act and any regulations or standards established pursuant to 
  this Act shall not supersede any provision of State law with respect to 
  dormancy fees, inactivity charges or fees, service fees, or expiration 
  dates of gift certificates, store gift cards, or general-use prepaid 
  cards.
  
  SEC. 5. ENFORCEMENT.
  
      (a) Unfair or Deceptive Act or Practice.--A violation of this Act 
  shall be treated as a violation of a rule defining an unfair or 
  deceptive act or practice prescribed under section 18(a)(1)(B) of the 
  Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
      (b) Actions by the Commission.--The Federal Trade Commission shall 
  enforce this Act in the same manner, by the same means, and with the 
  same jurisdiction, powers, and duties as though all applicable terms 
  and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et 
  seq.) were incorporated into and made a part of this Act.
      (c) Individual Cause of Action.--Nothing in this Act shall be 
  construed to limit an individual's rights to enforce a State law 
  relating to unfair or deceptive acts or practices.
target: Fair Gift Card Act of 2009 - Declares it unlawful, with certain exceptions, for any person to impose a dormancy fee, inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card.
  
  Declares it unlawful, with certain exceptions, for any person to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date.
  
  Requires any violation of this Act to be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under the Federal Trade Commission Act.
feat_title: A bill to prohibit unfair or deceptive acts or practices relating to gift certificates, store gift cards, and other general-use prepaid cards, and for other purposes.