Assemblymember Cahill Urges Shoppers to Shop Safe This Holiday Season

New York consumers better protected from hidden gift card fees and threat of identify theft

December 1, 2005

The holiday shopping season is upon us and it’s important that consumers are aware of legislation that helps protect their purchases and avoids fraud.

Make sure you know the real value of gift cards

Many consumers have had to discover the hard way that all gift certificates and gift cards are not created equal. As gift certificates and gift cards become an increasingly popular alternative to hand-picked holiday gifts, many companies have used them to impose hidden fees and increase profits. To combat this growing trend, the Legislature passed laws to protect consumers from hidden fees and undisclosed conditions associated with gift certificates and gift cards. These new protections help ensure that consumers know exactly what the terms are when purchasing a gift certificate or gift card and, more importantly, get what they pay for.

Now vendors and retailers are required to eliminate any retroactive fees and are prohibited from collecting monthly service fees until after a gift certificate or gift card goes unused for 13 months (Ch. 171 of 2004). An additional measure requires that vendors disclose the terms and conditions of a gift certificate or gift card at the time of purchase (Ch. 170 of 2004).

Protect yourself from identity theft

With the Internet increasingly being used by consumers for banking and shopping, computer hackers pose a serious threat to the safety of private information. Data-security failures involving companies like LexisNexis, Bank of America and Wachovia are all examples of the vulnerability of our financial safety. This past summer, CitiFinancial lost information on nearly 4 million customers including names, addresses, Social Security numbers, account numbers and payment histories of loans.

To better protect New Yorkers from the growing threat of identity theft, I supported a new law requiring companies and state agencies to notify consumers if their personal financial information has been compromised (Ch. 442 of 2005). The enacted legislation not only requires companies to be more responsible with the personal data they collect, it also gives New York residents the information they need to safeguard themselves from becoming a victim of identity theft.

One of the most important ways to protect yourself is by reviewing your credit report. As of the beginning of September 2005, all New Yorkers are now entitled to a free credit report from each of the three major credit reporting agencies. You can use your credit report to make sure no one has stolen your personal information to make purchases or open fraudulent credit accounts. I urge everyone to take advantage of this new law by going to www.annualcreditreport.com or by calling toll-free 1-877-322-8228.

Whether you’re shopping at neighborhood stores or online, these laws will hopefully reduce potential headaches and stress during this hectic time. Have a safe and happy holiday season.

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