• Federal Reserve Proposes Rules to Restrict Fees and Expiration Dates on Gift Cards
  • December 21, 2009 | Authors: Beth S. DeSimone; Jeremy W. Hochberg; Brian P. Larkin; Amy Ralph Mudge
  • Law Firm: Arnold & Porter LLP - Washington Office
  • On November 16, 2009, the Board of Governors of the Federal Reserve (Board) issued proposed rules (Proposed Rules) that would restrict the fees and expiration dates that may apply to gift certificates, store gift cards, and general-use prepaid cards that are marketed as gift cards (collectively, gift cards). The Proposed Rules would amend Regulation E, 12 C.F.R. Part 205, which implements the Electronic Fund Transfer Act (EFTA), 15 U.S.C. 1693 et seq. These amendments would implement the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), which was signed into law on May 22, 2009. The CARD Act requires the Board to adopt final rules implementing the gift card provisions within nine months of the date of enactment, or no later than February 22, 2010. The CARD Act and the Proposed Rules represent the latest federal actions in gift card restrictions since the Federal Trade Commission (FTC) in 2007 entered into settlement agreements with K-Mart and Darden Restaurants regarding their respective gift card practices. www.arnoldporter.com