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Gift Card, Senate Bill 250 |
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Monday, 25 June 2007 |
 Have you ever received a
gift card that you did not think you would use only to loose the value of the
card? Legislation by Senator
Ellen Corbett (D-San Leandro) would change that by strengthening consumer
rights for gift cards passed the Senate last week. In 2006, more than $8
billion in gift cards went unspent in the United States. Senator Corbett’s bill, Senate Bill 250, allows consumers to
redeem cash for the remaining value on gift cards, as long as the value is
below $20.
 “Under current law, a store can refuse giving the
remaining value of a gift card back in cash, no matter how small the value,” Sen. Corbett said. “It is wrong that retailers are making a
profit without providing a service. When
an individual purchases a gift card, I don’t believe they think they are making
a donation to the retailer.” An
attorney for a consumer group, Norma Garcia stated “Too many gift cards are not fully redeemed and
carry balances that go unspent," said Garcia, senior attorney with
Consumers Union. "This bill will
help make sure that California
consumers get the full value out gift certificates or cards they buy or
receive." The Senator adds “Every consumer has had the experience
of losing the small value remaining on a gift card. Consumers have the right to
the cash value of these gift cards, and my bill makes that happen.”Under
current law, most gift certificates are barred from having expiration dates and
service fees. However, gift cards with
less than $5 can have dormancy fees and a store can refuse to give the
remaining value back in cash no matter how small the value left on the
card. SB 250 passed the Senate on a
(24-15) vote. It moves to the Assembly
for further hearings.
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Last Updated ( Monday, 25 June 2007 )
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