<?xml version='1.0' encoding='utf-8'?>
<section article="gcl" article_name="Commercial Law" number="14-4902" title_number="14" title_name="Miscellaneous Consumer Protection Provisions" subtitle_number="49" subtitle_name="Gift Card Fraud">
  <level label="a">
    <text>Except as provided in subsection (b) of this section, a merchant may not knowingly sell an open– or a closed–loop gift card to a consumer unless:</text>
    <level label="1">
      <text>The merchant conspicuously displays a notice in substantially the same form as the model notice created under § 14–4904(1) of this subtitle:</text>
      <level label="i">
        <text>For an in–person sale, at or near the physical location where:</text>
        <level label="1">
          <text>The gift card is displayed for sale; or</text>
        </level>
        <level label="2">
          <text>The sale occurs; or</text>
        </level>
      </level>
      <level label="ii">
        <text>For an online sale, on the webpage:</text>
        <level label="1">
          <text>Where the gift card is offered for sale; or</text>
        </level>
        <level label="2">
          <text>That is displayed before the sale is finalized;</text>
        </level>
      </level>
    </level>
    <level label="2">
      <text>For an in–person sale of an open–loop gift card, the gift card is enclosed in secure packaging that:</text>
      <level label="i">
        <text>Is sealed in a manner that is not easily opened without signs of tampering;</text>
      </level>
      <level label="ii">
        <text>Except as provided in item (iii) of this item, conceals all numeric codes specific to the activation or redemption of the gift card, including any bar code, CVV number, PIN number, or activation code;</text>
      </level>
      <level label="iii">
        <text>Displays an activation code, bar code, or other activation data only if the packing used is more secure than it otherwise would be if the data were fully concealed; and</text>
      </level>
      <level label="iv">
        <text>Includes a warning that states the following or uses language substantially similar to the following:</text>
        <text>“Do not sell or purchase if packaging has been broken or indicates tampering”; and</text>
      </level>
    </level>
    <level label="3">
      <text>For an in–person sale of a closed–loop gift card, the gift card is presented in packaging that:</text>
      <level label="i">
        <level label="1">
          <text>Conceals or covers, in a manner that is not easily removed or replaced without signs of tampering, all numeric codes specific to the redemption of the gift card; or</text>
        </level>
        <level label="2">
          <text>If made more secure through partial concealment or covering than full concealment or covering under item 1 of this item, partially conceals or covers, in a manner that is not easily removed or replaced without signs of tampering, all numeric codes specific to redemption of the gift card; and</text>
        </level>
      </level>
      <level label="ii">
        <text>Includes a warning that states the following or uses language substantially similar to the following:</text>
        <text>“Do not sell or purchase if packaging has been broken or indicates tampering.”.</text>
      </level>
    </level>
  </level>
  <level label="b">
    <text>A merchant may sell an open– or a closed–loop gift card that is not enclosed in secure packaging as required under subsection (a)(2) of this section if:</text>
    <level label="1">
      <text>The gift card is a chip–enabled, numberless card that is activated by a consumer after registering the card on the card issuer’s website; or</text>
    </level>
    <level label="2">
      <text>The gift card:</text>
      <level label="i">
        <text>Is sold exclusively by:</text>
        <level label="1">
          <text>A merchant for use only at the retail establishment of the merchant; or</text>
        </level>
        <level label="2">
          <text>A group of affiliated merchants for use only at the retail establishments of the affiliated merchants; and</text>
        </level>
      </level>
      <level label="ii">
        <text>Is secured in a physical location within the merchant’s retail establishment that is accessible only by an employee of the merchant.</text>
      </level>
    </level>
  </level>
</section>
