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Massachusetts Gift Certificate Law

Massachusetts Gift Certificate Law

 

According to Massachusetts Law, all Gift Certificates must be valid for at least 7 years.

A restaurant or store must honor the gift certificate for seven years.

  • Gift Certificates not clearly marked with both a date of issuance and a date of expiration shall be good forever.
  • An electronic gift card with a banked dollar value that is not clearly marked with BOTH the issuance date and expiration date on its face, must have the issuance date and expiration date either:
    • Clearly printed on a sales receipt, given to the buyer at the time of sale, OR
    • Available through an Internet site or toll-free information telephone line to the buyer or holder of the electronic gift card.
  • An electronic gift card is good forever if
    • the buyer of the electronic gift card does not receive a printed sales receipt with both the issuance date and expiration date clearly marked on it
      OR,
    • the buyer or holder of the electronic gift card does not have both the issuance date and the expiration date available through an Internet site OR through a toll-free information telephone line.


Definition of Gift Certificates

The definition of Gift Certificates includes electronic cards with a banked dollar value, a merchandise credit, a certificate where the issuer has received payment for the full face value for the future purchase or delivery of goods or services and any other medium that evidences the giving of consideration in exchange for the right to redeem the it for goods, food, services, credit or money of at least an equal value. Pre-paid calling arrangements, such as pre-paid phone cards, are not considered Gift Certificates under the law.

SCROLL_TEXT

MGL Chapter 266 Section 75C – Whoever sells or offers to sell a gift certificate as defined in section 1 of chapter 255D, which imposes a time limit of less than 7 years within which such certificate may be redeemed, shall be punished by a fine of not more than $300. This section shall not apply when the purchaser of the gift certificate is not obligated to pay for it until the time of use. Whoever, after having sold a gift certificate refuses to redeem the certificate before it has reached the expiration date, shall be punished by a fine of not more than $300.

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