Governor Hochul Signs Legislation to Protect Consumers from Potential Pre-Paid Gift Card Scams

Legislation (A.266A/S.145B) Requires Businesses to Post Notice Alerting Customers About Gift Card Scams

Governor Kathy Hochul today signed legislation (A.266A/S.145B) that will protect consumers from scammers by requiring businesses give notice of potential scams when selling gift cards. This bill underscores Governor Hochul's commitment to protecting New Yorkers against a form of theft that has become increasingly common.

"During the holiday season and throughout the year, consumers deserve to be protected from scams that target their hard-earned money," Governor Hochul said. "By signing this legislation, we are taking the necessary steps to ensure New Yorkers remain vigilant of and protected from deceitful attempts to steal their money in the form of gift cards."

Legislation A.266A/S.145B amends the general business law to require that retailers selling gift cards also post a notice cautioning customers of gift card scams and providing information on what to do if they believe they may be a victim of such a scam.

State Senator Kevin Thomas said, "The increasing number of scammers using gift cards as a mechanism to steal from consumers is steadily growing. I thank Governor Hochul for signing my legislation requiring businesses to display in-store warnings alerting consumers of potential gift card scams. Taking these steps will alert customers to the prevalence of these scams, provide greater protections to New Yorkers and save potential victims from financial fraud."

Assemblymember Amy Paulin said, "Gift cards are an easy way for scammers to steal from people because they can't be traced. Education by alerting people of the existence of the problem is key. Many people might not know they are purchasing gift cards at the behest of scammers. I commend Governor Hochul for taking this step to help protect New Yorkers from gift card scams."

New York Secretary of State Robert J. Rodriguez said, “Gift cards are more popular than ever which gives scammers more opportunities to take advantage of consumers, costing them millions of dollars. I thank Governor Hochul for signing this new law as the New York Department of State’s Division of Consumer Protection knows, knowledge is power and an informed consumer is a smart consumer.”