The new law is part of Congress’s Credit CARD Act of 2009 and took effect Aug. 22.

The consumer-protection measure:

– limits certain fees, such as inactivity or service fees, on gift cards and gift certificates

– prevents retailers or other gift-card and gift-certificate issuers from setting expiration dates for card balances of less than five years

– requires new disclosure statements on the cards and certificates.

The law applies to gift certificates and cards, as well as general-use gift cards that can be used anywhere, such as those issued by Visa and American Express. The law does not apply to rewards cards or reloadable prepaid cards not intended for use as gift certificates.

Under the new law, gift-card and gift-certificate recipients can use card balances for at least five years from the date the card is purchased, or at least five years after any money is added to the card, whichever is longer.

New gift cards and certificates will be required to carry information about the frequency and amount of fees, expiration dates, and a toll-free number for people to call for more information.

What happens to existing cards/certificates?

Existing cards or certificates produced before April 1, 2010, can be sold through Jan. 31, 2011, without including the new on-card disclosure statements. Congress made this change last month to ensure that retailers and others would not have to throw out existing card stock.

However, the new rules on expiration dates and fee limits apply even to existing cards, and retailers need to disclose consumers’ rights through alternative sources, such as in-store signage.

New cards or certificates produced after Aug. 22, 2010, will need to carry the new disclosure statements. After Jan. 31, 2011, all gift cards and certificates need to include the required disclosure statements.

Many states have rules on gift cards. State provisions that provide greater protection to consumers take precedence over federal provisions.

The Federal Reserve web site offers more information.