AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT CARD FRAUD (Makes offenses against gift card holders subject to the penalties for larceny.)

H8044

2026 -- H 8044
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LC005602
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT
CARD FRAUD

Introduced By:
Representatives Baginski, Read, and Casimiro

Date Introduced:
February 27, 2026

Referred To:
House Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 6-59-1 and 6-59-3 of the General Laws in Chapter 6-59 entitled
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"Gift Card Fraud" are hereby amended to read as follows:
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6-59-1. Definitions.
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As used in this chapter
,
:
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(1) “Cardholder” means any person to whom a physical or virtual gift card is issued or any
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person who has agreed with the card issuer to pay obligations arising from the issuance of a gift
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card to another person.
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(2) “Card issuer” means any person that issues a gift card or the agent of that person with
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respect to that card.
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(3) “Closed-loop gift card” means a card, code, or device that is issued to a consumer on a
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prepaid basis primarily for personal, family, or household purposes in a specified amount,
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regardless of whether that amount may be increased or reloaded in exchange for payment; and is
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redeemable upon presentation by a consumer at a single merchant or group of affiliated merchants.
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(4) “Forgery” means any person who, with the intent to defraud, alters or tampers with a
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gift card.
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(5)
“
gift

Gift
card” means a written promise or electronic payment device that:
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(1)
(i)
Is usable at a single merchant or an affiliated group of merchants that share the same
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name, mark, or logo, or is usable at multiple, unaffiliated merchants or service providers;

1

(2)
(ii)
Is issued in a specific amount;
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(3)
(iii)
May or may not be increased in value or reloaded;
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(4)
(iv)
Is purchased and/or loaded on a prepaid basis for the future purchase or delivery of
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any goods or services; and
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(5)
(v)
Is honored upon presentation.
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(6) “Gift card redemption information” means information unique to each gift card which
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allows the cardholder to access, transfer, or spend the funds on that gift card.
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(7) “Gift card seller” means a merchant that is engaged in the business of selling open-loop
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or closed-loop gift cards to consumers.
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(8) “Open-loop gift card” means a card, code, or device that is issued to a consumer on a
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prepaid basis primarily for personal, family, or household purposes in a specified amount,
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regardless of whether that amount may be increased or reloaded in exchange for payment; and is
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redeemable upon presentation at multiple unaffiliated merchants for goods or services within the
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payment card network.
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(9) “Value” means the greatest amount of economic loss the owner of the property might
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reasonably suffer including, in the case of a gift card, the full monetary face value or potential value
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for variable load gift cards.
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6-59-3.
Penalty for violation
Penalty for violation of posting requirement.
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Any person, firm, partnership, association, corporation, or retail mercantile establishment
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that violates the provisions of
§ 6-59-2

this chapter
shall be subject to a civil penalty of up to two
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hundred fifty dollars ($250).
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SECTION 2. Chapter 6-59 of the General Laws entitled "Gift Card Fraud" is hereby
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amended by adding thereto the following section:
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6-59-4. Crimes involving gift cards.
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(a) Any person who, with intent to defraud, acquires or retains possession of a gift card or
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gift card redemption information without the consent of the cardholder, card issuer, or gift card
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seller, in an amount less than one thousand five hundred dollars ($1,500), is guilty of larceny and
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subject to a fine of up to one thousand dollars ($1,000) or by imprisonment of up to one year, plus
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restitution for any person or entity defrauded; or if the larceny exceeds one thousand five hundred
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dollars ($1,500) then subject to the penalties as provided pursuant to the provisions of § 11-41-5.
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(b) Any person who, with intent to defraud, alters or tampers with a gift card is guilty of
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forgery and shall be subject to the penalties pursuant to the provisions of § 11-17-1.
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(c) Any person who, with intent to defraud, uses, for the purpose of obtaining money,
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goods, services, or anything else of value, a gift card or gift card redemption information that has

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been obtained in violation of subsection (a) or (b) of this section in an amount in excess of one
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thousand five hundred dollars ($1,500) is guilty of larceny and subject to the penalties as provided
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pursuant to § 11-41-5.
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(d) If the value of all money, goods, services, and other things of value obtained in violation
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of this section exceeds one thousand five hundred dollars ($1,500) in any consecutive six (6) month
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period, then the person shall be guilty of larceny and subject to the penalties as provided in § 11-
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41-5.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT
CARD FRAUD
***
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This act would make offenses against gift card holders subject to the penalties for larceny.
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This act would take effect upon passage.
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LC005602
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