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Bill

SB 5987

Improving consumer protection on gift certificates.

2023-2024 Regular Session Introduced by Steve Conway and 15 co-sponsors

SB 5987 strengthens gift certificate protections by restricting expiration dates, fees, and merchant obligations to ensure consumers can fully use purchased certificate value.

Executive session scheduled, but no action was taken in the Senate Committee on Business, Financial Services, Gaming & Trade at 8:00 AM.
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WeVote Research Nonpartisan
Bill Summary · SB 5987

Legislative bill overview

SB 5987 proposes to strengthen consumer protections for gift certificates in Washington State by establishing clearer rules around expiration dates, fees, and merchant obligations. The bill addresses gaps in existing regulations that allow businesses to impose restrictions that reduce the practical value of gift certificates for consumers.

Why is this important

Gift certificates represent billions in consumer spending annually, and many consumers lose money when certificates expire, fees are charged, or businesses become unavailable. Clearer protections ensure consumers can actually use the value they've purchased and reduce disputes between merchants and gift certificate holders.

Potential points of contention

  • Business compliance costs: Retailers may argue that stricter rules and extended validity periods increase administrative burden and accounting complexity
  • Expiration date restrictions: Businesses may resist longer validity periods or elimination of expiration dates, viewing them as important for financial planning and liability management
  • Fee limitations: Merchants may contest restrictions on dormancy fees or service charges, claiming they offset costs of maintaining inactive accounts
  • Small business impact: Smaller retailers without sophisticated accounting systems may face disproportionate compliance challenges compared to large chains

Compiled from official sources — confirm details with the bill’s official record.

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