http://www.krassmonroe.com/publications/articles/business/13.htm
I thought this article was pretty interesting because everyone seems to use gift cards, and I never thought about the laws that could be involved in purchasing and using them. The article explains the laws that govern the businesses selling gift cards and the consumers using them. One of the legal issues included in the laws of gift cards is expiration dates. The author keeps the explanation of the legal issues pertaining to gift cards pretty simple however the laws for each state can vary.
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As a lifelong Pennsylvanian, I haven't yet come across gift cards with expiration dates. It seems paradoxical to me that such vehicles for "building brand loyalty" could in fact cause a rift between the giftee and the appropriate company, due to the unwanted pressure of having to spend money within a certain time. That money would otherwise be cash, with no expiration or penalty for dormancy (or possibly even the interest which would bear on the cash if invested somewhere). Sounds like xmas this year will be a little bit easier for me.
ReplyDeleteIt's interesting that even though there may not be an expiration date. The gift cards that I have come across usually will start to deduct a low monthly fee if you don't use the card within a certain time frame. Also, I have found that the pre-paid visa/mastercards are not accepted at certain standard retail stores. Good article Britt!
ReplyDeleteI never considered that a gift card with an expiration date, after a set time period, could esheat to the state. Assumed the business would benefit from that. Very interesting article.
ReplyDeleteWoW! I have never received or bought anyone a gift card before, but knowing this is really helpful for when I do receive or get one for someone. It is crazy how some gift cards deduct monthly fees if you don't use it..keep it simple and stay with cash! :-)
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