WeVote
Log In

Bill

Bill

AB 894

Relating to: terms and conditions of gift certificates, gift cards, and other gift obligations and providing a penalty.

2025-2026 Regular Session Introduced by Elijah Behnke and 10 co-sponsors

Wisconsin bill establishes consumer protections for gift cards and prepaid gifts, restricting fees and expiration dates while penalizing non-compliant issuers and retailers.

Failed to concur in pursuant to Senate Joint Resolution 1
0
WeVote Research Nonpartisan
Bill Summary · AB 894

Legislative bill overview

AB 894 establishes or modifies consumer protections governing gift certificates, gift cards, and similar prepaid gift obligations in Wisconsin. The bill sets terms and conditions for how these products can be issued, used, and what happens to unused balances, while establishing penalties for non-compliance by retailers and issuers.

Why is this important

Gift cards represent billions in consumer spending annually, with unused balances creating significant unclaimed value. Clear state regulations prevent predatory practices like hidden fees, arbitrary expiration dates, and unreasonable restrictions that disproportionately affect consumers who receive these as gifts.

Potential points of contention

  • Expiration and dormancy fees: Defining whether gift card balances can expire and what fees retailers can charge for inactivity will impact both consumer protection and retailer profitability
  • Breakage rights: Whether retailers retain unclaimed gift card funds (significant revenue stream) versus requirements to remit to state unclaimed property programs affects business models
  • Scope of coverage: Determining which prepaid products fall under the law (restaurant cards, retail cards, digital services) versus which are exempt creates potential loopholes or unintended business consequences

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

Sign in to ask a question.