A class action against leading gift-card distributor Simon Property Group will go ahead after a New York appellate panel's finding that the company's imposition of improperly disclosed "dormancy" fees may constitute breach of contract and deceptive business practices. The proposed class would comprise New York residents who were issued cards before April 2005. The fees have resulted in similar actions in numerous states, including Connecticut, Massachusetts and New Hampshire.
Gift-Card Contract Breach, Deception Claims Proceed
New York Law Journal
October 21, 2008