Holiday Shopping Countdown Tips - Day 12
Gift Certificates and Gift Cards
Exhausted from trying to figure out just what to get for everyone on your holiday shopping list?
Thinking about buying gift certificates or gift cards so the folks on your list will be sure to get presents they really want?
You should be aware of restrictions and fees there may be on some kinds of gift cards. The rules governing certificates and cards differ, depending on whether they can be used at only one retailer and its affiliates, or a variety of different, unaffiliated retailers.
For single-retailer certificates or cards, California law (Civil Code section 1749.5) provides they generally do not expire. That means they can have no expiration dates. Additionally, retailers can't charge monthly fees or other "dormancy fees" unless the card has not been used for two years, and there's $5 or less value remaining on the card.
Even then, the terms for charging any fees must be visible on the card before purchase, the charge can be no more than $1 per month, and consumers must have the option of adding value to the card (to prevent the value from going below $5 until you use all the value).
There are minor exceptions to the no-expiration rule: Gift cards and certificates issued for a food product, given away at no cost as part of a promotional program, or sold at a discount to employers or nonprofit organizations for fundraising purposes, may have expiration dates. But even in those cases, the expiration date is valid only if it appears in capital letters in at least 10-point type on the front of the gift card or certificate.
The rules are quite different for multi-retailer certificates or cards. These newer products do not offer consumers the same level of protections as the traditional, single-retailer cards or certificates. Specifically, these "mall cards" may expire and may include monthly or other charges that are deducted over time from the value of the card or certificate, even if the consumer has not used them.
Consumers who believe a retailer has violated the law can notify the local district attorney's office or the Attorney General's Public Inquiry Unit at P.O. Box 944255, Sacramento, CA 94244-2550. Consumers also may file complaints on the Attorney General's web site at
http://ag.ca.gov/contact/complaint_form.php?cmplt=CL
