Michigan’s Laws on Gift Card Expirations and Fees

Gift cards have become a popular choice for consumers in Michigan and across the United States as they provide convenience and flexibility for both gift-givers and recipients. However, it’s essential to understand Michigan’s laws regarding gift card expirations and fees to maximize their value. This article delves into these laws, ensuring you can make informed decisions each time you use a gift card.

In Michigan, the laws governing gift cards are primarily governed by the Michigan Gift Card Act and the federal Credit Card Accountability Responsibility and Disclosure Act (CARD Act). According to these regulations, most gift cards sold in Michigan cannot have expiration dates. This means that once you purchase a gift card, it should remain valid indefinitely, allowing the recipient to use it whenever they choose without the pressure of a looming expiration date.

While the Michigan Gift Card Act prohibits expiration dates on gift cards, there are some exceptions. For instance, certain promotional gift cards, which are typically offered as rewards or bonuses, may have expiration dates as specified by the retailer. However, any expiration dates for promotional gift cards must be clearly disclosed to the purchaser at the time of sale.

In addition to expiration dates, consumers should also be aware of potential fees associated with gift cards. Michigan law prohibits the imposition of inactivity fees on gift cards unless the card has been inactive for at least 12 months, and this fee can only be charged once per month thereafter. Additionally, any fees charged must be clearly disclosed, and they cannot exceed 5% of the card's value. This is an important protection for consumers, ensuring that your gift card retains its value over time.

When purchasing gift cards, it is advisable to read the terms and conditions provided by the retailer. This will help you identify any specific fees or expiration dates that may apply to that particular card, even if they fall under the exceptions noted earlier.

It’s notable that the CARD Act, a federal law, provides further protection for consumers by ensuring that any fees, including activation fees, must be disclosed before the purchase of the card. The CARD Act also stipulates that gift cards cannot expire within five years from the date of activation, further enhancing consumer protection.

In summary, Michigan's laws on gift card expirations and fees aim to protect consumers while encouraging the use of gift cards as a flexible purchasing option. By understanding these regulations, consumers can make the most out of their gift card purchases, ensuring they can enjoy their gifts without the burden of unwanted restrictions or fees. Always be proactive in checking the specific terms associated with each gift card, ensuring a smooth and satisfactory shopping experience.