Question: I thought there was a law that gift cards can’t expire. I bought a $25 gift certificate at a popular, long-standing Korean supermarket, paying cash to save them the credit-card transaction fee, and was given a paper certificate and a separate sheet saying that the certificate expired one year from the date of issue. That’s not right, is it?
Answer: Plastic gift cards and paper gift certificates purchased at full face value can expire under certain conditions, but not in one year. State law requires at least five years for electronic gift cards and at least two years for gift certificates issued solely in paper form. The expiration date must be clearly stated; when an expiration date is not given, the card doesn’t expire. So, the one-year expiration date on the paper certificate you purchased isn’t right. You can file a complaint about the retailer with the state Office of Consumer Protection online at consumercomplaint.hawaii.gov or by calling 808-587-4272 (press 7 after hearing the recorded greeting).
Q: We have a $200 gift certificate from a sushi restaurant that we received as a gift about four years ago. We were not eating out much at the time and then shortly thereafter the COVID-19 pandemic arrived and we certainly were not eating out then. When we contacted the restaurant, they advised us that the certificate had expired and was no longer valid. Is that allowed?
A: When we followed up with you by phone, you said that you had a paper certificate with a two-year expiration written on it and that you believed the restaurant’s gift certificates were only available in paper form. In that case, the restaurant’s response would be within federal and state law.
The federal gift card law exempts certificates issued solely in paper form and Hawaii’s law requires a duration of at least two years for them, not five years as with electronic plastic gift cards, QR codes or other forms of redemption. Still, feel free to ask the restaurant to honor your gift certificate anyway, in the interest of good customer relations. “The consumer who has this gift certificate can still ask the merchant to use it past the expiration date,” said Mana Moriarty, OCP’s executive director, noting that the law doesn’t prevent businesses from exceeding minimum requirements.
These two questions are among a flurry Kokua Line has received about gift cards and certificates amid holiday shopping and celebrations. Here are tips from Moriarty and the OCP, useful to consumers who buy and use gift cards and certificates, as well as to the businesses that sell them. Consumers who encounter violations may file complaints or concerns with OCP as described in the first answer.
>> As mentioned, Hawaii’s law requires restaurants and retailers to honor their gift certificates for at least two years (for those issued solely in paper form) or five years (for electronic or other forms).
>> If there is an expiration date, it must be indicated. If no expiration date is stated, the card does not expire.
>> Service fees are prohibited.
>> Since 2020, issuers must refund the remaining value in cash if it’s below five dollars.
>> The law applies “only to certificates for which the issuer has received payment for the full face value.”
>> It excludes vouchers sold at a discount, gift cards solely for telephone services, those sold solely for event admission and those not marketed as gift certificates.
>> Be alert to avoid buying gift cards that have been tampered with. When buying in a retail store, avoid buying gift cards displayed in the open with easily accessible numbers and PINs. Gift cards kept behind the counter or in well-sealed packaging are preferred.
>> If possible, change the security code as soon as you buy the card. Also register the card and change the PIN as soon as possible after purchase.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
