Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

SB 437 clarifies how gift card value is determined in theft and fraud cases and prohibits tampering with gift cards to defraud others. It defines "closed-loop" (single merchant) and "open-loop" (multi-merchant network) gift cards, setting their value as the highest of: face value, what the defendant claimed, or actual loss incurred. The bill creates a new misdemeanor offense for altering gift cards or packaging with fraudulent intent, punishable by up to 18 months in jail or a $500 fine. This directly affects individuals committing gift card fraud and businesses handling gift card transactions in Maryland.