U.S. Appeals Court affirms District Court ruling, provides limited relief from New Jersey's stored value card AUP requirements

Retail & Consumer Products Quickbrief

The U.S. Court of Appeals, Third Circuit on January 5, 2012, affirmed the orders of the U.S. District Court for the District of New Jersey barring New Jersey from enforcing a "place of purchase" presumption for stored value cards and the retroactive escheatment of cards already issued. The Appeals Court also affirmed the District Court's ruling that the "data collection provision," requiring stored value card issuers to collect and retain purchaser or owner information, was properly severable from the "place of purchase" presumption and, therefore the District Court did not abuse its discretion in denying to enjoin the data collection provision. In addition, the Appeals Court affirmed the District Court's ruling that New Jersey's two-year abandonment period is not preempted by federal law. [New Jersey Retail Merchants Association, et. al. v. Sidamon-Eristoff, U.S. Ct. App., 3rd Cir., Nos. 10-4551, -4552, -4553, -4714, -4715, -4716, 11-1141, -1164 and -1170, 1/5/12]



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