[HISTORY: Adopted by the Board of Commissioners of the Township
of Muhlenburg 4-18-2022 by Ord. No. 609.[1] Amendments noted where applicable.]
[1]
Editor's Note: This chapter, adopted as Ch. 242, was renumbered
to maintain the alphabetical organization of the Code.
The fraudulent procurement of third-party gift cards/pre-paid
cards at retail establishments in the Township has become a widespread
problem. These incidents affect numerous victims, particularly the
elderly, and require considerable law enforcement resources to investigate.
By adopting these provisions, the Township Commissioners desire to
protect the health, safety, and welfare of all persons living in the
Township, as well as those visiting the Township, and operating businesses
within the Township, by deterring the fraudulent procurement of third-party
gift cards at retail establishments and conserving the limited amount
of time, energy, and resources available to local law enforcement
agencies when investigating said behavior.
The Commission finds that:
A.
There has been a substantial increase in the fraudulent procurement
of third-party gift cards at retail establishments within the Township.
Third-party gift cards are oftentimes purchased by:
B.
Due to the complex nature of cases involving fraudulent third-party
gift card procurement, local law enforcement agencies have exerted
a significant amount of time and energy into investigating these cases.
These investigations are particularly time-consuming and involve numerous
victims, resulting in a strain on the limited amount of resources
that are otherwise available to local law enforcement.
C.
Requiring retail establishments to verify identification at the point
of sale is an effective way to deter criminal behavior, and to prevent
victimization of innocent citizens, particularly the elderly.
D.
This section is adopted pursuant to the First Class Township Code
of the Commonwealth of Pennsylvania and the Township's inherent
regulatory authority. The provisions contained herein are reasonably
related to promoting the general welfare of the community and other
legitimate police-power objectives, both expressly identified herein
and otherwise implied.
This chapter shall be known and may be cited as the "Fraud Protection/Third-Party
Gift Card Procurement Ordinance."
The following terms are hereby defined as indicated for purposes
of interpretation, administration, and enforcement of this chapter:
Any instrument or device, whether known as a credit card,
credit plate, charge plate, courtesy card, bank services card, banking
card, check guarantee card, debit card, electronic benefit system
(EBS) card, electronic benefit transfer (EBT) card, assistance transaction
card, or by any other name, issued with or without fee by an issuer
for the use of the cardholder in obtaining credit, money, goods, services,
public assistance benefits, or anything else of value, and includes
the account or identification number or symbol of a financial transaction
card.
An individual, partnership, limited partnership, limited
liability company, corporation, or other legal entity.
A driver's license, Pennsylvania identification card
number, or other identification document issued for identification
purposes by any state, federal, or foreign government if the document
includes the person's photograph, full name, birth date, and
signature.
A physical place of business in which consumer merchandise
is sold to the general public.
To transfer to another in exchange for monetary consideration
through the use of a financial transaction card.
A reloadable or non-reloadable prepaid card sold at retail
establishments and used to make purchases via either the American
Express, MasterCard, or Visa networks, for which the value is decreased
upon each purchase.
A.
Identification verification required. Any person that sells/redeems
a third-party gift card to an individual on behalf of a retail establishment,
including an agent, employee, or other representative of the retail
establishment, shall require that the individual purchasing the third-party
gift card display proof of identification and shall verify that said
proof of identification matches the individual's form of payment.
B.
Self-checkout. It is unlawful for a retail establishment to allow
the purchase of third party gift cards at self-checkout kiosks where
customers themselves scan merchandise and pay without the assistance
of an employee of the retail establishment.
C.
Enforcement; violations. In addition to any rights or remedies that
are otherwise available to the Township in law or in equity, violations
of this section shall be subject to the penalty provisions contained
in § 242-7.
A.
At the time of any transaction, involving said gift cards which:
a) Involves a transaction that exceeds $400; or b) Involves multiple
simultaneous purchases of gift cards of $400 or greater, the retailer
or dealer in shall make a record of the name, date of birth, address,
obtained from a valid driver's license or other legal form of
identification. Such information shall be supplied to the Police Department
as part of the report required hereunder.
B.
All retailers shall make out and deliver to the Chief of Police or
his duly authorized representatives, before 12:00 noon every Monday,
or the next following business day if the Monday is a holiday, a legible
and accurate report of all qualifying transactions that occurred during
the preceding business week. Such report shall contain the name or
names of the purchasers or redeemers and an accurate, detailed description,
together with serial numbers thereon, if any, of all gift cards taken
in or redeemed. Failure to timely submit the list shall be a violation
of this chapter.
A.
Whoever violates any provision of this chapter shall be fined not
more than $600 and, in default of payment thereof, shall be imprisoned
for not more than 30 days. Each day or portion thereof on which a
violation exists shall be considered a separate violation of this
chapter. Each section of this chapter which is violated shall be considered
a separate violation. Such fines shall be in addition to any other
fine which may be imposed under the provisions of any other ordinances
of the Township, Pennsylvania law, or federal law.
B.
In addition to or in lieu of the penalties provided in this § 242-7,
any violations of the provisions of this chapter may be abated or
enforced by proceedings seeking equitable relief against the violator.
All other sections, parts and provisions of the Code of the
Township of Muhlenberg shall remain in full force as previously enacted
and amended, except as amended hereby.
In the event any provision, section, sentence, clause or part
of this chapter shall be held to be invalid, illegal or unconstitutional
by a court of competent jurisdiction, such invalidity, illegality
or unconstitutionality shall not affect or impair the remaining provisions,
sections, sentences, clauses or parts of this chapter, it being the
intent of the Board of Commissioners that the remaining chapter shall
be and shall remain in full force and effect.
This chapter shall take effect and be in force from and after
its enactment as provided by law.
