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More Companies Announce Gift Card Pullout Due To NJ Law

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Joining American Express which made a similar move days before, InComm and Blackhawk Network in separate announcements on April 5th indicated that they would stop distributing  gift cards in New Jersey stores.  The two companies supply gift cards to about 3800 retailers in New Jersey.  Both companies are scheduled to remove the cards in June unless a 2010 New Jersey law requiring collection of customer information is reversed.  Many gift card issuers and distributors have noted the cost and difficulty in complying with this mandate.  Implementation of the law had been delayed due to an injunction challenging various components of the law, but the injunction was lifted recently. Currently, the New Jersey legislature is considering a bill that would repeal  the zip code collection provision.  This bill, AB 1871 passed the Assembly on March 15, 2012 and awaits action by the New Jersey Senate.

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