New Hampshire Retail Association backs SB 258 to combat gift card scams

During a recent meeting of the New Hampshire House Criminal Justice and Public Safety Committee, lawmakers and experts discussed the growing issue of gift card scams that are impacting residents across the state. The conversation highlighted the need for stronger protections against these fraudulent activities, which often target vulnerable populations, including the elderly.

Prosecutors from the elder abuse unit shared insights into various scams, such as "grandparent scams" and "tech support scams," that exploit unsuspecting individuals. These scams often involve the theft of gift card information, which can be used to make unauthorized purchases online. The committee explored the legal framework surrounding these crimes, noting that if any part of the conspiracy occurs within New Hampshire, local authorities can prosecute offenders.

One significant point raised during the meeting was the absence of preventive measures in the proposed legislation, SB 258. Representatives expressed concern that the bill lacks requirements for retailers to implement warning signs or secure packaging for gift cards, which could help deter theft. Some members suggested that these additions could enhance consumer protection, although there was uncertainty about how such measures would be enforced across different retailers.

Curtis Picard, President and CEO of the New Hampshire Retail Association, voiced strong support for the bill and emphasized the need for collaboration between retailers and law enforcement to combat these scams. He pointed out that New Hampshire's sales tax-free status makes it an attractive target for scammers, who often redeem stolen gift cards for merchandise that is then sold on the black market.

The committee also discussed the challenges faced by retailers when it comes to reimbursing victims of gift card fraud. While many stores voluntarily compensate customers who fall victim to these scams, there is currently no legal requirement for them to do so. This places a financial burden on retailers, who often absorb the losses while trying to maintain customer trust.

As the meeting concluded, lawmakers recognized the urgency of addressing gift card scams and the need for a comprehensive approach that includes both legal penalties for offenders and preventive measures to protect consumers. The discussions underscored the importance of safeguarding residents from financial exploitation and ensuring that the community remains vigilant against these evolving threats.