Simon Mall Group Settles Gift Card Lawsuit

March 2, 2005

Gift Cards • Survey Shows Consumers Misunderstand Gift Cards • Gift Card Spending Drops • Gift Cards Should Be Used Quickly • Gift Cards Include Hidden Costs • Gift Cards Often Gather Dust • Court Upholds Gift Card Rules • Restaurant Chains Settle Gift Card Charges • Kmart Settles With FTC Over Gift Card Sales Practices • Gift Cards Becoming Currency For Criminals • Gift Cards an $8 Billion Gift to Retailers • Bad Gift Better Than Gift Card, Says Philosopher • Scrooges Threaten Holidays With Gift Card Scam • Connecticut Angered by Simon Mall's End Run Around Gift Card Rules • Congress Studies Gift Card Abuses • FTC Issues Gift Card Tips • Survey: Teens High on Gift Cards • Simon Mall Group Settles Gift Card Lawsuit • NY Sues Simon Malls For Gift Card Fees • States Challenge Mall Gift Cards • Make sure gift cards don't have strings attached --- Complaints • American Express Gift Cards • Home Depot Gift Cards

New York Attorney General Eliot Spitzer announced that Simon Property Group Inc. has settled a lawsuit by agreeing to comply with New York’s gift card law.

"This settlement recognizes that consumers are entitled to receive the full protection of the law with regard to monthly fees and important disclosures about gift card terms and conditions," Spitzer said. "I am pleased that Simon has recognized the importance of complying with New York’s gift card law."

Simon Property Group Inc. - the nation’s largest shopping mall chain - operates ten retail shopping malls and outlet centers on Long Island, and in the Hudson Valley, Central New York and Western New York.

Simon had been issuing cards that would impose a $2.50 monthly "administrative fee" on all gift cards beginning in the seventh month after purchase.

In a lawsuit filed in Manhattan State Supreme Court four weeks ago, Spitzer alleged that Simon’s assessment of a monthly fee on gift cards violated a recently enacted state law that bans monthly service fees on gift cards until the card has been unused for twelve consecutive months.

New York State’s gift card law took effect on October 18, 2004 and applies to all cards purchased after that date.

In settling the Attorney General’s lawsuit, Simon has agreed to comply with New York’s gift card law and not to assess a service fee on any card unless it has been unused for twelve consecutive months.

Simon also has agreed to comply with New York’s law that requires it to disclose on its gift card the five dollar fee it charges to replace a lost or stolen card, and the $7.50 fee it charges to reissue an expired card. These fees are not prohibited by law, but must be conspicuously disclosed on the card itself.

As part of the settlement, Simon has agreed to pay the state $100,000 in penalties and $25,000 in costs.

"As a sponsor of New York State’s gift card laws, I applaud the settlement that Attorney General Spitzer has negotiated. This is a great victory for our consumers and will show all gift card providers that they must abide by the laws of this state if they wish to do business here," said State Senator Charles J. Fuschillo.

The retail shopping centers owned and operated in New York State by Simon include: Roosevelt Field in Garden City (Nassau County); Mall at The Source in Westbury (Nassau County); Walt Whitman Mall in Huntington Station (Suffolk County); Smith Haven Mall in Lake Grove (Suffolk County); The Westchester in White Plains (Westchester County); Jefferson Valley Mall in Yorktown Heights (Westchester County); Nanuet Mall (Rockland County); Woodbury Common Premium Outlets in Central Valley (Orange County); Waterloo Premium Outlets in Waterloo (Seneca County); and Chautauqua Mall in Lakewood (Chautauqua County).

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.