Requires that retailers retain money received for gift certificates in a separate account, until the gift certificate is used or redeemed.

Rhode Island Gift Certificate Protection Bill

This bill would require retailers in Rhode Island to set aside the money they receive when someone buys a gift certificate into a separate, dedicated account. That money would have to stay in that account until the person actually uses or redeems the gift certificate. In other words, stores couldn't immediately spend or mix that money with their regular operating funds.

The main purpose of this bill is to protect consumers who buy or receive gift certificates. Under current rules, if a store goes out of business or faces financial trouble, customers holding unused gift certificates may lose that money entirely because the store already spent it. By requiring retailers to keep those funds separate, the bill would help ensure the money is still available when a customer wants to use their gift certificate.

This bill would primarily affect two groups: retailers who sell gift certificates — such as stores, restaurants, and other businesses — and consumers who purchase or receive them. Retailers would face new bookkeeping and financial management requirements, which could mean added administrative costs, particularly for smaller businesses. Consumers, on the other hand, would gain greater assurance that their gift certificates will hold their value and be honored when they're ready to use them.

The bill was introduced in the Rhode Island House of Representatives and referred to the House Corporations Committee. As of now, the committee has recommended it be held for further study, meaning it has not yet advanced through the legislative process.