Hawaiian Gift Card Ban on Fees Begins July 1, 2005

Hawaii's new gift card law will soon take effect. Beginning July 1st of 2005, retailers will be prohibited from levying a fee on consumers for not using gift cards. Executive director of the Hawaiian State Office of Consumer Protection, Stephen H. Levins, stated, "They can no longer charge a dormancy fee if the cards aren't being used."

Several merchants offering gift cards currently charge a monthly maintenance fee if the gift card continues to have a balance after six months or a year. Hawaii is among twelve other states that have passed legislation curbing or regulating fees and other penalties. Currently it is also illegal in Hawaii for stores to offer a gift card that expires in less than two years. An expiration date must come after two years from date of purchase. In 2004 U.S. consumers puchased $45 billion worth of gift cards.