SB280 • 2025

AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO THEFT.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Townsend
Last action: 2026-05-21
Official status: Passed Senate 5/21/26
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Law to Prevent Gift Card Theft

This law makes it illegal for someone to take, alter, or use gift cards without permission and sets punishments for these actions.

What This Bill Does

Defines what a gift card is and who can issue one.
Makes it against the law to take or keep a gift card without permission from the owner, issuer, or seller.
Bans altering or tampering with gift cards or their packaging before they are sold.
Prohibits creating plans to get gift cards through lies or tricks.
Forbids using stolen gift cards or information about them to get money, goods, services, or other valuable things.

Who It Names or Affects

People who buy and use gift cards
Businesses that sell gift cards

Terms To Know

Gift Card Redemption Information: The unique information needed to access or spend the money on a gift card.
Cardholder: A person who receives or is given a gift card.

Limits and Unknowns

Does not specify how long after passing it will take effect.
Does not cover all types of fraud related to gift cards, only specific actions described in the law.

Bill History

2026-05-21 Delaware General Assembly
Passed By Senate. Votes: 20 YES 1 ABSENT
2026-05-20 Delaware General Assembly
Reported Out of Committee (Judiciary) in Senate with 4 On Its Merits
2026-04-15 Delaware General Assembly
Introduced and Assigned to Judiciary Committee in Senate

Official Summary Text

AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO THEFT.
Scams and fraud related to gift cards are rapidly becoming a major issue in the United States. The Federal Trade Commission reported more than 41,000 gift card fraud reports or $212 million in losses in 2024 with the final numbers for 2025 expected to be similar. With advancements in technology, these scams are becoming increasingly sophisticated and consequential for consumers.

This Act sets forth the definitions and elements of crimes related to gift card theft. It establishes that a person is guilty of gift card theft if one of the following criteria is true (with the intent to defraud):
1. Acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller.
2. Alters or tampers with a gift card or the packaging in which it is offered for sale.
3. Devises a scheme to obtain a gift card or gift card redemption information that has been obtained in violation of paragraph (b)(1) or (2) of this section or as a result of a scheme described in paragraph (b)(3) of this section.
4. Uses, for the purpose of obtaining money, goods, services, or anything else of value, a gift card or gift card redemption information that has been obtained in violation of paragraph (b)(1) or (2) of this section or as a result of a scheme described in paragraph (b)(3) of this section.

Lastly, this Act establishes that gift card theft is punishable under § 841(c) and § 841(d) of Title 11.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Sen. Townsend & Rep. Bush

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 280

AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO THEFT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 5, Part I, Title 11, of the Delaware Code by making insertions as shown by underline as follows:

§841E. Crimes related to gift cards.

(a) For purposes of this section:

(1) “Cardholder” means any person or party to whom a physical or virtual gift card is issued through a purchase or receives a gift card from a willing party.

(2) “Card issuer” means any person that issues a gift card or the agent of that person with respect to that card.

(3) “Closed-Loop Gift Card” means a card, code, or device that is issued to a consumer on a prepaid basis primarily for personal, family, or household purposes in a specified amount, regardless of whether that amount may be increased or reloaded in exchange for payment; and is redeemable upon presentation by a consumer at a single merchant or group of affiliated merchants.

(4) “Gift Card” means a physical or digital “closed-loop gift card” or “open-loop gift card” that is either activated or inactivated.

(5) “Gift Card Redemption Information” means information unique to each gift card which allows the cardholder to access, transfer, or spend the funds on that gift card.

(6) “Gift Card Seller” means a merchant that is engaged in the business of selling open-loop or closed-loop gift cards to consumers.

(7) “Open-Loop Gift Card” means a card, code, or device that is issued to a consumer on a prepaid basis primarily for personal, family, or household purposes in a specified amount, regardless of whether that amount may be increased or reloaded in exchange for payment; and is redeemable upon presentation at multiple unaffiliated merchants for goods or services within the payment card network.

(8) “Value” means the greatest amount of economic loss the owner of the property might reasonably suffer including, in the case of a gift card, the full monetary face value or potential value for variable load gift cards.

(b) Any person who, with intent to defraud, does any of the following is guilty of gift card theft:

(1) Acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller.

(2) Alters or tampers with a gift card or the packaging in which it is offered for sale.

(3) Devises a scheme to obtain a gift card or gift card redemption information from a card holder, card issuer, or gift card seller by means of false or fraudulent pretenses, representations, or promises.

(4) Uses, for the purpose of obtaining money, goods, services, or anything else of value, a gift card or gift

card redemption information that has been obtained in violation of paragraph (b)(1) or (2) of this section or as a result of a scheme described in paragraph (b)(3) of this section.

(c) Gift card theft is punishable under § 841(c) and § 841(d) of this title.

SYNOPSIS

Scams and fraud related to gift cards are rapidly becoming a major issue in the United States. The Federal Trade Commission reported more than 41,000 gift card fraud reports or $212 million in losses in 2024 with the final numbers for 2025 expected to be similar. With advancements in technology, these scams are becoming increasingly sophisticated and consequential for consumers.

This Act sets forth the definitions and elements of crimes related to gift card theft. It establishes that a person is guilty of gift card theft if one of the following criteria is true (with the intent to defraud):

1. Acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller.

2. Alters or tampers with a gift card or the packaging in which it is offered for sale.

3. Devises a scheme to obtain a gift card or gift card redemption information that has been obtained in violation of paragraph (b)(1) or (2) of this section or as a result of a scheme described in paragraph (b)(3) of this section.

4. Uses, for the purpose of obtaining money, goods, services, or anything else of value, a gift card or gift card redemption information that has been obtained in violation of paragraph (b)(1) or (2) of this section or as a result of a scheme described in paragraph (b)(3) of this section.

Lastly, this Act establishes that gift card theft is punishable under § 841(c) and § 841(d) of Title 11.

Author: Senator Townsend