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Press Release

Release Date: November 16, 2009
For immediate release
The Federal Reserve Board on Monday announced proposed rules that would restrict the fees and
expiration dates that may apply to gift cards. The rules would protect consumers from certain
unexpected costs and would require that gift card terms and conditions be clearly stated.
The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1)
there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee
is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the
fees. Expiration dates for funds underlying gift cards must be at least five years after the date of
issuance, or five years after the date when funds were last loaded.
The Board's proposed rules generally cover retail gift cards, which can be used to buy goods or
services at a single merchant or affiliated group of merchants, and network-branded gift cards, which
are redeemable at any merchant that accepts the card brand.
The proposed rules are issued under Regulation E (Electronic Fund Transfers) to implement the gift
card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009.
The Board's notice is attached. Comments on the proposal must be submitted within 30 days after
publication in the Federal Register, which is expected shortly.
Federal Register notice (308 KB PDF)
Highlights document (13 KB PDF)

http://www.federalreserve.gov/newsevents/press/bcreg/20091116a.htm

11/17/2009