Legal Concerns for Catalogers ’07: Lawyers Outline Key Use-tax, Gift Card Issues

With all recent developments in mind, Eisenstein offered the following pointers to issuers of gift cards.

1. Disclose all terms and conditions for use.

2. Disclosure should satisfy the New York Statutory Standard and the Kmart Standard.

3. Be wary of the 13 states (including California, Connecticut, George, Illinois and Massachusetts) that have statutes prohibiting expiration dates on gift cards or charging dormancy fees.