Connecticut’s gift card law is one of the strongest in the country: cards sold in the state can’t carry expiration dates, can’t be drained by inactivity or dormancy fees, and must be redeemable for cash once the balance drops below $5. The protections apply to most retail gift cards, with some carve-outs for promotional cards, loyalty rewards, and general-use prepaid cards like Visa or Mastercard gift cards.
Gift Cards Cannot Expire
Selling or issuing a gift certificate with an expiration date is prohibited outright. The statute also bars any language on the card, or in a related agreement, that even suggests an expiration might apply.1Justia. Connecticut Code 42-460 – Gift Certificate Subject to Expiration Date Prohibited A card that sat in a drawer for five years is worth exactly what it was worth on day one.
General-use prepaid cards work a little differently. The funds still can’t expire, but the physical card itself can carry an expiration date if three conditions are met: the card clearly states the funds don’t expire and gives a toll-free number or website for a replacement, the replacement is free, and the card had at least five years of validity when it was purchased.2Justia. Connecticut Code 42-460a – General-Use Prepaid Cards and Linked Prepaid Cards If your prepaid Visa gift card shows an expired date on the front, the issuer owes you a new card with the same balance at no charge.
No Inactivity or Dormancy Fees
A separate statute makes it illegal to impose a dormancy fee, inactivity fee, service charge, or any similar penalty on a Connecticut gift card, no matter how long it goes unused. The card can’t even carry language suggesting such fees might apply.3Justia. Connecticut Code 3-65c – Charge, Fee or Penalty for Inactivity Prohibited
This goes further than federal law. The federal CARD Act allows one inactivity fee per month once a card has been dormant for 12 months, provided the fee is disclosed.4GovInfo. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards The federal statute doesn’t preempt stronger state protections, so in Connecticut the balance stays whole.
Cash Back When the Balance Drops Below $5
Once the remaining balance on a Connecticut gift card falls below $5, you can ask the retailer for the rest in cash instead of making another purchase, and the retailer has to hand it over.5Justia. Connecticut Code 42-461 – Gift Cards No more stray $2.37 balances stuck on a card forever.
One practical requirement: you’ll need the proof of purchase or gift receipt. The same statute requires every seller or issuer to provide a paper or electronic proof of purchase or gift receipt at the time of sale, so ask a gift-giver to include the receipt with the card.5Justia. Connecticut Code 42-461 – Gift Cards
Which Cards Are Covered
The law defines a “gift card” as a prefunded record whose value decreases with each use. That sweeps in store gift cards, electronic gift cards, and stored-value cards. Several categories sit outside these rules:
- General-use prepaid cards like Visa, Mastercard, and American Express gift cards, which follow the separate rules under Section 42-460a.
- Loyalty and promotional cards issued through rewards or promotional programs where no money changed hands.
- Gift certificates sold below face value, including those donated or sold at a discount to charitable or nonprofit organizations.
- Cards from retailers with no physical location in Connecticut.
- Certificates issued exclusively on paper, though the separate expiration ban in Section 42-460 may still cover them.
The exclusions matter most for cards received as loyalty rewards or promotional giveaways. Those can carry expiration dates and other restrictions because no purchase money was involved.5Justia. Connecticut Code 42-461 – Gift Cards
What to Do If a Business Won’t Honor Your Card
If a retailer imposes an expiration date, tacks on an inactivity fee, or refuses a valid cash redemption, you can file a complaint with the Connecticut Department of Consumer Protection. DCP investigates, works with businesses to resolve issues, and can bring enforcement action with fines and penalties.6Connecticut Department of Consumer Protection. File a Consumer Complaint
You also have a private right of action under the Connecticut Unfair Trade Practices Act. If the conduct qualifies as an unfair or deceptive trade practice, you can sue for your actual losses, and the court can award punitive damages plus reasonable attorney’s fees and costs. Suit must be filed within three years of the violation, and the law requires sending a copy of the complaint to the Attorney General and the Commissioner of Consumer Protection at the time of filing.7Justia. Connecticut Code 42-110g – Action for Damages