Escheat and Gift Card Laws: Colorado

Tuesday, December 25, 2012

COLORADO

Definition of Gift Card/Gift Certificate:

Colo. Rev. Stat. §6-1-722

“Gift card” means a pre-funded tangible or electronic record of a specific monetary value evidencing an issuer’s agreement to provide goods, services, credit, money, or anything of value. A “gift card” includes, but is not limited to, a tangible card; electronic card; stored-value card; or certificate or similar instrument, card, or tangible record, all of which contain a microprocessor chip, magnetic chip, or other means for the storage of information and for which the value is decremented upon each use.

Fee Provision:

Colo. Rev. Stat. §6-1-722(b)(3)

Prohibits service fee, a dormancy fee, an inactivity fee, a maintenance fee, or any other type of fee.

Redeemable for Cash:

Colo. Rev. Stat. §6-1-722(b)(2)

On and after the effective date of this section, the issuer shall redeem the remaining value of a gift card for cash if the amount remaining is five dollars or less on request of the holder.

Escheat Provision:

Colo. Rev. Stat. §38-13-108.4

Gift certificate redeemable in cash subject to escheat if unclaimed by owner by more than five years. Certificates issued for food, products, goods or services are not subject to escheat provisions.

Colo. Rev. Stat. §38-13-108.9

This article does not apply to unclaimed gift cards where the holder or issuer is a business association with annual gross receipts from the sales or issuance of all gift cards totaling $200,000 or less.

SOURCE: National Conference of State Legislatures


PLEASE NOTE:  Please note the summaries should be used for general informational purposes and not as a legal reference. DropZone Marketing is unable to answer questions or provide guidance to business owners regarding gift cards and gift certificate laws and practices. If you have questions regarding issuing or redeeming a gift card or gift certificate or a retailer’s practices, please contact the Office of the Attorney General in your state.

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