A new law has gone into effect in Maryland aimed at tackling the growing issue of gift card fraud. This legislation is the first of its kind in the state and addresses the rising number of cases where scammers drain the funds from gift cards, often before the recipients even have a chance to use them. This type of fraud has been increasing, with thieves using a variety of methods to get their hands on gift card numbers and access the funds. Once the money is drained, it’s nearly impossible for victims to recover it, which is where the assistance of our Washington, DC consumer fraud lawyer becomes invaluable.
Under the new law, Maryland retailers must take certain steps to protect consumers. For example, businesses are now required to refund the remaining balance on a gift card if the amount is less than $5. This move is designed to discourage scammers who often leave small amounts on cards after draining most of the funds. The law also mandates that businesses clearly display terms and conditions for gift card use to better inform consumers.
Legal Protections Against Gift Card Fraud
This law highlights the need for businesses and consumers to be aware of their legal protections when it comes to gift card fraud. Gift cards have become a major target for scammers because they are easy to steal and difficult to trace.
While the new law provides some additional protections, it’s still important for both businesses and consumers to do what they can to safeguard themselves against fraud.
For businesses, this means understanding their legal obligations under the new law. In addition to providing refunds for small remaining balances, retailers need to ensure that they are taking appropriate steps to protect their customers’ gift card information. Failing to comply with these regulations can result in legal challenges or penalties.
If you’re a consumer who’s experienced gift card fraud, it’s crucial to report suspicious activity as soon as possible to avoid any further financial loss.
How Businesses Can Stay Compliant
Retailers in Maryland now have a legal responsibility to stay compliant with the new gift card law. This means not only offering refunds for small balances, but also making sure that their gift card systems are secure. Many scammers rely on weak security practices to steal gift card information, so investing in better protection for these systems is essential.
As part of compliance, businesses should also make sure that terms and conditions are clearly displayed and easy to understand. Transparency with customers about how their gift cards can be used and what protections are in place is a good way to build trust and reduce the likelihood of fraud-related disputes.
Being proactive and following these steps can help businesses avoid legal issues while also protecting their customers.
Legal Help For Victims Of Consumer Fraud
Despite the protections offered by the new law, some consumers will still fall victim to gift card fraud. If you find yourself in this situation, it’s important to seek legal help. Our Washington, DC consumer fraud lawyer can assist with identifying your legal options, holding businesses accountable if they fail to comply with regulations, and helping you recover any lost funds.
As the new Maryland gift card law goes into effect, it’s more important than ever to be vigilant and informed about the legal steps you can take if you encounter fraud. At Eric Siegel Law, we’re dedicated to helping consumers fight back against civil injustice. Whether you’ve been a victim of gift card draining or other types of consumer fraud, we’re here to illuminate the truth and provide legal guidance backed by over 30 years of experience. Call our team today to discover the difference we can make.