WA Bans Gift-Card Expirations, Fees

theodp writes "The Seattle Times reports on new legislation that makes WA one of 15-20 states that have passed or are in the process of adopting laws that ban expiration dates on gift certificates, which enjoyed sales of $40+ billion last year. The consumer protection law is also expected to address the cat-and-mouse games retailers play of shopping for states with unclaimed-property laws that allow them to pocket unused gift-card value. As it so happens, Delaware state law requires a company to send unclaimed gift certificate monies to the state, while Idaho allows a company to keep the cash for itself. While an Amazon.com spokeswoman said the company would adhere to the new WA law for WA residents, she declined to say why the Seattle-headquartered and Delaware-incorporated Amazon established an Idaho company two years ago called A2Z to handle its gift-card operations."

Comments

Unclaimed gift certficates

[Senator Bozo]

Delaware state law requires a company to send unclaimed gift certificate monies to the state

If expiration dates on gift certificates are banned, how do they determine when a gift certificate is 'unclaimed'?

Gift certificates are a godsend for retailers

[Killswitch1968]

I'll elaborate:

1. First of all at the initial purchasing of this piece of plastic/paper, the retailer gets straight up cash with no physical loss of goods until possibly months later. In that time the money could be used for all sorts of useful things.
2. People who receive gift certificates feel obligated to use them to their full amount, otherwise they will lose the value of the card. The only problem is few things are exactly worth $20, so the consumer is forced to either pay up their own money for something, or buy something for less than the value of the card.
3. Gift certificates can't be banked or deposited, they can only be storted in some physical location, making them far easier to lose than money.

Don't get me wrong, I don't mind buying or receiving gift certificates. They have saved me tons of time buying gifts. But I think it's clear retailers are getting quite a deal out of it.

Re:Amazon.com

[ChrisMaple]

It is shady. The company has cash earning interest, the customer has a certificate losing value in exact proportion to the currency it's denominated in. I've received gift certificates for goods from companies that offered nothing I wanted, and had to wait years until they got something I liked.

A gift certificate is like an anonymous savings account that bears no interest and can only be used at one company.