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AB894: Bill Text
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2025 - 2026 LEGISLATURE
LRB-5965/1
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2025 ASSEMBLY BILL 894
January 23, 2026 - Introduced by Representatives
Novak
,
Tranel
,
Brooks
,
Dittrich
,
Doyle
,
Gundrum
,
Kreibich
,
O'Connor
,
Penterman
,
Behnke
and
Wichgers
, cosponsored by Senator
Testin
. Referred to Committee on State Affairs.
AB894,1,3
1
An Act
to amend
165.25 (4) (ar);
to create
100.56 of the statutes;
relating to:
2
terms and conditions of gift certificates, gift cards, and other gift obligations
3
and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill establishes certain terms and conditions with respect to gift certificates, gift cards, and similar items (gift obligations) that are consistent with federal law concerning such gift obligations.
Specifically, under the bill, no person may sell a gift obligation that has an expiration date that is earlier than five years after the date on which the gift obligation was sold or, if the gift obligation is reloadable, five years after the date on which funds were last loaded to the gift obligation.
The bill also includes limitations with respect to fees charged in connection with gift obligations. Under the bill, no person may impose a dormancy, inactivity, or service fee on a gift obligation unless all of the following apply:
1. There has been no activity on the gift obligation in the one-year period ending on the date on which the fee is charged.
2. The gift obligation states in a clear and conspicuous manner the amount of any such fee that may be charged, how often the fee may be charged, and, if applicable, that the fee may be charged for inactivity.
3. No more than one such fee is charged in any given month.
The Department of Agriculture, Trade and Consumer Protection or a district attorney may enforce the provisions of the bill by bringing an action for a civil penalty of up to $10,000. Also, the bill creates a private right of action by which a person may recover the greater of twice the person’s pecuniary loss or $200 for each violation as well as the person’s costs and attorney fees.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB894,1
1
Section
1
.
100.56 of the statutes is created to read:
AB894,2,6
2
100.56
Gift obligations.
(1)
Definition.
In this section, “gift obligation”
3
means an obligation, evidenced by a gift certificate, gift card, or other object or
4
document marketed as a gift, to accept the gift certificate, gift card, or other object
5
or document from the holder as payment, up to a specified amount, for a person’s
6
goods or services.
AB894,2,10
7
(2)
Expiration dates.
No person may sell a gift obligation that has an
8
expiration date that is earlier than 5 years after the date on which the gift
9
obligation was sold or, if the gift obligation is reloadable, 5 years after the date on
10
which funds were last loaded to the gift obligation.
AB894,2,13
11
(3)
Imposition of fees or charges.
No person may impose a dormancy,
12
inactivity, or service fee with respect to a gift obligation unless all of the following
13
apply:
AB894,2,15
14
(a) There has been no activity with respect to the gift obligation in the one-
15
year period ending on the date on which the fee is charged.
AB894,2,17
16
(b) All of the following are stated clearly and conspicuously on the gift
17
obligation:
AB894,2,18
18
1. The amount of any dormancy, inactivity, or service fee that may be charged.
AB894,2,19
19
2. How often such fee may be charged.
AB894,3,1
1
3. If applicable, that such fee may be charged for inactivity.
AB894,3,2
2
(c) No more than one fee is charged in any given month.
AB894,3,7
3
(4)
Penalties and remedies.
(a) Any person who suffers a pecuniary loss
4
because of a violation of this section may commence an action for the pecuniary loss.
5
If the person prevails, the person shall recover twice the amount of the pecuniary
6
loss or $200 for each violation, whichever is greater, together with costs, including
7
reasonable attorney fees, notwithstanding s. 814.04 (1).
AB894,3,11
8
(b) The department may commence an action in the name of the state to
9
restrain by temporary or permanent injunction a violation of this section. Before
10
entry of final judgment, the court may make any necessary orders to restore to any
11
person any pecuniary loss suffered by the person because of the violation.
AB894,3,14
12
(c) The department or any district attorney may commence an action in the
13
name of the state to recover a forfeiture to the state of not less than $100 nor more
14
than $10,000 for each violation of this section.
AB894,2
15
Section
2
.
165.25 (4) (ar) of the statutes is amended to read:
AB894,3,22
16
165.25
(4)
(ar) The department of justice shall furnish all legal services
17
required by the department of agriculture, trade and consumer protection relating
18
to the enforcement of ss. 91.68, 93.73, 100.171, 100.173, 100.174, 100.175, 100.177,
19
100.18, 100.182, 100.195, 100.20, 100.205, 100.207, 100.209, 100.21, 100.28,
20
100.37, 100.42, 100.50, 100.51, 100.55,
100.56,
and 846.45 and chs. 126, 136, 344,
21
704, 707, and 779, together with any other services as are necessarily connected to
22
the legal services.
AB894,3
23
Section
3
. Initial applicability.
AB894,4,2
1
(
1
)
This act first applies to a gift obligation, as defined in s. 100.56 (1), that is
2
sold on the effective date of this subsection.
AB894,4,3
3
(end)
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