Relating to: terms and conditions of gift certificates, gift cards, and other gift obligations and providing a penalty.

AB 894 prohibits businesses from selling gift cards or certificates with expiration dates shorter than 5 years (or 5 years after reloading for reloadable cards). It bans hidden inactivity or dormancy fees unless clearly disclosed on the card, limits such fees to once per month, and requires specific fee details to be visible. Consumers can seek double damages or $200 per violation, and businesses face state penalties of $100-$10,000 per violation. The law directly affects gift card buyers and sellers, applying to all gift obligations sold after its effective date.