04/16/2026
One of our outspoken participants in this group wrote us privately and asked us to make this post to help with reaching the community. He has wrote the City on this issue and wants to alert the community to this growing problem and his thoughts on how to help curb it. If you agree and support feel free to like, comment or reach the City as well. Thank you David for the information. The following is a letter sent to the City and shared with us:
Dear Mayor and City Council,
I am writing to propose the adoption of a local ordinance requiring retail establishments that sell gift cards to display clear, visible warning signage to help prevent increasingly common fraud schemes—particularly those targeting seniors.
A widespread scam involves individuals being instructed over the phone to purchase gift cards and then read the card numbers aloud to a caller. Victims are often told the request is urgent and tied to law enforcement, tax issues, utilities, or family emergencies. Once the numbers are shared, the funds are typically unrecoverable.
This type of fraud has become one of the most frequently reported consumer scams in the United States, with older adults disproportionately affected. I suggest calling this the Baker- Glisman act of Troy, due to that of two citizens of this City have had their elderly parents scammed within the last month. It is from that unfortunate event for which the need to protect the citizenry arises.
Proposed Ordinance Requirement:
Retailers that display or sell gift cards shall be required to post a warning sign meeting the following criteria:
Located within 12 inches of any gift card display or point of sale
Clearly visible and unobstructed
Printed in a legible font size and contrasting colors
Suggested Sign Language:
WARNING:
If anyone asks you to purchase a gift card and provide the numbers over the phone, it may be a scam.
Legitimate businesses and government agencies will never request payment using gift cards.
Please use caution and speak with a trusted person before completing your purchase.
This measure is low-cost, minimally burdensome for businesses, and has the potential to prevent significant financial harm in our community. Similar consumer warnings are already required in other industries to address known risks, and this proposal follows that same common-sense approach.
I respectfully urge you to consider this ordinance as a proactive step to protect residents—especially vulnerable populations—from preventable fraud. The Michigan Legislature authorized an incorporated city to take such measures through MCL 91.1 of the Fourth Class City act 215 of 1895, Item (2)… “the council may enact ordinances and make regulations consistent with the laws and constitution of this state as they may consider necessary for the safety, order and good government of the city and general welfare …” as well as items within the Home Rule City act 279 of 1909.
Thank you for your time and consideration.
Dave Kniffen
CITY OF TROY, MICHIGAN
ORDINANCE NO. ____
AN ORDINANCE to amend Chapter 38 (Offenses), Article VI (Consumer Protection), of the Code of the City of Troy by adding Section 38-___ to require warning signage for gift card sales; to provide for enforcement and penalties; and to protect the public health, safety, and welfare.
THE CITY OF TROY ORDAINS:
Sec. 38-___ Gift Card Fraud Warning Signage.
(a) Purpose.
The City finds that fraud schemes involving the purchase of gift cards are prevalent and frequently target elderly and vulnerable persons. The purpose of this section is to require warning signage at locations where gift cards are sold in order to inform consumers and reduce fraud.
(b) Definitions.
For purposes of this section:
(1) Gift card means any stored-value card, certificate, or similar instrument, whether physical or digital, that is redeemable for goods, services, or monetary value.
(2) Retail establishment means any person or entity engaged in the business of selling goods or services within the City that offers gift cards for sale to the public.
(3) Point of display means any location where gift cards are displayed, stocked, or offered for customer selection, including checkout counters.
(c) Signage required.
(1) A retail establishment shall post a warning sign at each point of display and each point of sale where gift cards are offered.
(2) The sign shall be:
a. Located within twelve (12) inches of the gift card display or point of sale;
b. Clearly visible and unobstructed;
c. Not less than five (5) inches by seven (7) inches in size; and
d. Printed in a legible font with contrasting colors.
(d) Required language.
The sign required by this section shall contain substantially the following language:
WARNING:
If anyone asks you to purchase a gift card and provide the card number or PIN over the phone, text, or email, it may be a scam.
Legitimate businesses and government agencies will never request payment using gift cards.
Please use caution and consider speaking with a trusted person before completing your purchase.
(e) Enforcement.
This section shall be enforced by the City’s code enforcement officials or such other department as designated by the City Manager.
(f) Violations and penalties.
(1) A violation of this section is a municipal civil infraction.
(2) The fine for a violation shall be:
a. First offense: not more than $100.00;
b. Second offense: not more than $250.00;
c. Third or subsequent offense: not more than $500.00.
(3) Each day a violation continues shall constitute a separate offense.
(g) Severability.
If any provision of this section is held invalid, such invalidity shall not affect the remaining provisions.
(h) Effective date.
This ordinance shall take effect upon publication in accordance with law.
SAMPLE SIGNAGE BELOW
🚨 WARNING: GIFT CARD SCAMS 🚨
If anyone asks you to buy a gift card and
read the number or PIN to them,
👉 IT MAY BE A SCAM
• Government agencies will NEVER ask for gift cards
• Businesses will NEVER demand gift card payment
• Scammers often create urgency or fear
⚠️ STOP and think before you pay
⚠️ Talk to a family member or trusted person
When in doubt, DO NOT PURCHASE
