Yes, you read correctly. According to a recent ruling, the Court of Appeal has agreed with Los Angeles Superior Court Judge Anthony Mohr's stance:
The State of California cannot govern the rules of gift cards or gift certificates issued by an airline because the Airline Deregulation Act takes precedence over California Gift Card Laws.
The Airline Deregulation Act reads:
"...States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier..."
We don't believe this will have a big impact on consumers. According to our research, airline gift cards do not impose expiration dates. However, if you're given a gift card for free (by the airline), buy one below cost, or receive a voucher for taking a later flight,http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNENgEIocwNLJzqb2HRKoyYZFPci7g&url=http://www.journalpioneer.com/News/Local/2010-08-31/article-1714518/Gift-card-rules-now-in-effect/1 the terms may be different. It's always a good idea to know the terms or any company scrip you hold.
Keep in mind, ScripSmart Accounts can help you avoid loosing the value of a gift card or voucher carrying an expiration date. Simply register it with ScripSmart, add the expiration date and we'll send you a couple of notes via email before the card expires reminding you to use it or loose it.
ScripSmart Accounts are an easy way to get a little help in protecting the value of your gift cards and just one of several alerts you can enable on your ScripSmart Account.
Texas Already Excludes Airline Gift Cards
Interestingly, Texas Gift Card Law specifically excludes airline gift cards. From our research, they are the only ones to specifically exlcude such gift cards. It's likely the law makers in Texas are familiar with the Airline Deregulation Act. After all, this is not the first time it's blocked a state from enacting a law to govern an airline's business practices. Furthermore, several airlines are based in Texas.
Federal Gift Card Laws Apply
While a state may not enact legislation to govern airline gift cards, the federal government can and new federal gift card regulations likely apply to airlines. However, if you're given a gift card as a reward or part of a promotion, the new federal laws do not apply. In other words, if you don't pay full price, there is a chance your gift card will expire in less than 5 years.