Gift card statutes governing expiration dates and inactivity fees already pose cumbersome regulations for retailers. But gift card sellers should be wary of another source of regulation: state escheatment laws.
In the ongoing case State of Delaware ex rel. French v. Card Compliant, LLC, et al., Delaware asserts that unclaimed gift card balances belong to the state. In December, the federal district court remanded the case back to the Superior Court of the State of Delaware, New Castle, rendering defendants’ dismissal motions moot.
Many states have escheatment laws, which provide for abandoned or unclaimed property to escheat, or … Continue Reading