Schumer Seeks To Legislate Gift Cards
by Matt at Dec 6th, 2008
Apaparently there is nothing that the Democrats don’t want to regulate.
One year after putting retailers on notice, Sen. Charles Schumer said he will be introducing federal legislation that will install mandated standards on gift cards.
Under the proposal Schumer unveiled Wednesday afternoon at the Walden Galleria, all gift cards would have at least a five-year life span while eliminating the practice of declining values and hidden fees for those cards not used within a reasonable period of time. Schumer said the bill, which he dubbed the “Fair Gift Card Act”, could be enacted by federal lawmakers in time for next year’s peak holiday shopping season.
“The truth is gift cards should come with a warning attached,” Schumer said. “You need to know where to look and to look carefully with gift cards.”
Schumer said his office is frequently flooded with calls from angry consumers who were giving gift cards only to find they have a limited life or have a decreasing value after a given period of time, sometimes less than six months.
Democrats always label their actions as being in the interest of fairness. But how is it fair for the government to tell a business how to run its business? For one thing, gift cards already have printed disclaimers on them. It is also quite common for gift cards to have a limited life… and I say what is wrong with that? As long as the consumer is aware of the policy they can decide whether or not they want to get the gift card.
Another problem with government mandated non-expiring gift cards is that if the campany goes out of business the state (read: taxpayers) has to honor them. And how is that “fair” to the taxpayer.
I have a stash a gift cards… some expire, some don’t. If I fail to use them while they are still redeemable that is my fault… not the taxpayers’ responsibility.
Typical government attitude. We are all too stupid to live our own lives. We need Gov’t to protect us from ourselves.
Little known fact - declining value gift cards (value whittled away over time by merchant fees) are the merchants’ response to state governments claiming cards over a certain age as abandoned and $$$ must be turned over to the state. So the merchants started taking the money in fees on a time schedule that would zero the card out before it became “abandoned” and had to be turned over to the state. It’ll be interesting to see the provisions related to abandoned cards in Schumer’s plan. If there’s a pot of money somewhere, politicians are magically drawn to it…