GIFT AND PREPAID CARDS WILL NO LONGER BE SOLD IN NEW JERSEY

Blackhawk Network today announced that it plans to cease sales of gift and prepaid cards in New Jersey as a result of New Jersey’s intent to implement a 2010 unclaimed property law. American Express has already pulled its gift cards from New Jersey as a result of this legislation. A Federal Court injunction preventing implementation of the law was recently lifted, opening the door for New Jersey’s Treasury Department to claim balances of gift cards purchased in New Jersey if consumers don’t use them for a period of two years. In addition, the law requires retailers to collect customer ZIP code information when someone buys a gift card, a practice that cannot be easily implemented at a retail point of sale, and may not be relevant, since many of the cards purchased are given as gifts to other people. Unfortunately, grocery and other retailers selling cards are not able to comply with the requirements of this law without significantly increasing their costs, jeopardizing consumer privacy, or potentially slowing down the customer check out process. As a result, Blackhawk Network is planning to remove its third-party gift and prepaid cards from the state of New Jersey beginning in June 2012, unless the law is changed. Blackhawk Network’s third-party gift cards, representing over 175 different brands, are currently sold through over 1,300 retail locations in New Jersey.

If you are a New Jersey resident and don’t want to lose access to purchasing gift cards, visit www.giftcardusersunite.com to tell your elected officials. Consumers with questions about their gift and prepaid cards should email cs@blackhawk-net.com.