In our January 13, 2011 Franchise Alert, Maureen O'Brien wrote about New Jersey's efforts to seize unused stored value cards and travelers checks and the temporary injunction issued by the U.S . District Court of New Jersey enjoining the state from enforcing certain portions of the recent amendments to the New Jersey Unclaimed Property Law. Since our Franchise Alert, there have been further developments.
On January 31, 2011, mere hours before retailers were required to begin obtaining and maintaining a record of the zip code of each person purchasing stored value cards in New Jersey and each New Jersey resident purchasing stored value cards, the U.S. Court of Appeals for the Third Circuit granted a temporary injunction against the state's zip code collection requirement until a full panel of the Third Circuit can consider the matter. While this is good news for retailers feeling burdened by the state's amendments to its unclaimed property statute, that relief may be temporary pending the panel's ultimate decision.