KRS 367.890: "Gift card" defined -- Earliest permissible expiration dates -- Extra

charges and fees prohibited -- Liability of violator.

(1) "Gift card," as used in this section, means a certificate, electronic card, or other

medium issued by a merchant that evide nces the giving of consideration in

exchange for the right to redeem the certificate, electronic card, or other medium for

goods, food, services, credit, or money of at least an equal value. "Gift card"

includes any electronic card issued by a merchant wit h a monetary value where the

issuer has received payment for the full monetary value for the future purchase or

delivery of goods or services and any certificate issued by a merchant where the

issuer has received payment for the full monetary face value of the certificate for the

future purchase or delivery of goods and services. "Gift card" does not include a

prepaid calling card used to make telephone calls, or a general -use, prepaid card or

other electronic payment device that is issued by a bank or other financial institution

that is usable at multiple, unaffiliated merchants, or at automated teller machines, or

both, or a gift card issued by a merchant for a promotional program for which no

separate monetary consideration is given.

(2) Subject to subsec tion (5) of this section, no person or entity shall sell a gift card

containing an expiration date that is less than one (1) year after the date the gift card

is issued.

(3) No person or entity shall charge service charges or fees relative to that gift car d,

including dormancy fees, latency fees, or administrative fees, that have the effect of

reducing the total amount for which the holder of the gift card may redeem the gift

card until the expiration date on the card has expired.

(4) A gift card sold without an expiration date printed on the front or back of the card is

valid until redeemed or replaced with a new gift card.

(5) If the expiration date on the card is not less than one hundred twenty (120) days

from the date of issue, subsection (2) of this se ction does not apply to any of the

following gift cards:

(a) Sold below face value at a volume discount to employers or to nonprofit and

charitable organizations for fundraising purposes;

(b) Sold by a nonprofit or charitable organization for fundraising purposes; or

(c) Given by an employer to an employee, if use of the card is limited to the

employer's business establishment. As used in this paragraph, business

establishment may include a group of merchants that are affiliated with that

business establishment.

(6) Any person who violates subsection (3) of this section is liable to the holder of the

card for any amount that the redemption value of the gift card was reduced, any

court costs incurred, and reasonable attorney's fees.