In California, California Civil Code Sections 1749.45-1749.6 prohibit the inclusion of an expiration date, service fee, and dormancy (non use) fee on most gift certificates and gift cards (if purchased) from a California retailer for use with the retailer and/or its affiliates. In addition, pursuant to California Civil Code Section 1749.5(b), ALL gift certificates sold after January 1, 1997, are redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder. Although the seller gets to choose whether to issue a refund or replacement, effective January 1, 2008, any gift certificate with a cash value of less than $10 is redeemable in cash for its cash value. This is true even if the terms of your gift certificate or gift card state otherwise. See, California Civil Code Section 1749.51 and 1749.5(b)(2).

Exemptions – When A Gift Card Issued in California Can Have an Expiration Date.

Pursuant to California Civil Code Section 1749.5(d), certain gift certificates or gift cards sold after January 1, 1998, are not subject to any of the above rules (and may in fact contain an expiration date) IF they contain an expiration date in capital letters in at least 10-point type on the front of the card AND are:

1. Distributed by the issuer to a consumer without charge under an awards, loyalty or promotional program (California Civil Code Section 1749.5(d)(1)); OR
2. Donated or sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes, if the expiration date is 30 days or less after the date of sale (California Civil Code Section 1749.5(d)(2)); OR
3. Issued for perishable food products (California Civil Code Section 1749.5(d)(3)), which does NOT include a meal sold by a restaurant.