Complain about a product or service

FTC Issues Gift Card Tips

February 18, 2006

Gift Cards • Gift Cards Should Be Used Quickly • Gift Cards Include Hidden Costs • Gift Cards Often Gather Dust • Court Upholds Gift Card Rules • Restaurant Chains Settle Gift Card Charges • Kmart Settles With FTC Over Gift Card Sales Practices • Gift Cards Becoming Currency For Criminals • Gift Cards an $8 Billion Gift to Retailers • Bad Gift Better Than Gift Card, Says Philosopher • Scrooges Threaten Holidays With Gift Card Scam • Connecticut Angered by Simon Mall's End Run Around Gift Card Rules • Congress Studies Gift Card Abuses • FTC Issues Gift Card Tips • Survey: Teens High on Gift Cards • Simon Mall Group Settles Gift Card Lawsuit • NY Sues Simon Malls For Gift Card Fees • States Challenge Mall Gift Cards • Make sure gift cards don't have strings attached --- Complaints • American Express Gift Cards • Home Depot Gift Cards

During the 2005 holiday season, consumers reportedly purchased more than $18 billion worth of gift cards. The Federal Trade Commission warns consumers that gift cards, whether purchased from a retailer or a financial institution, may come with strings attached.

In particular, consumers should know that some gift cards have expiration dates; others have fees that can lessen the card’s value, including activation fees, transaction fees, monthly maintenance fees, and inactivity or non-use fees.

Tips for careful consumers:

• Read the fine print before you buy. If you do not like the terms and conditions, buy elsewhere.

• When buying a card, ask about expiration dates and fees. This information may appear on the card itself, on the accompanying sleeve or envelope, or on the issuer’s Web site. If you do not see it, ask for it. Make sure that whatever the salesperson tells you is in writing.

• Check on purchase exceptions. For example, can you use a store-specific gift card at both the physical store and the store’s Web site? Can an "all-purpose" card really be used to buy groceries or gasoline?

• Treat gift cards like cash. If your card is lost or stolen, report it to the issuer immediately. You may be out the entire amount on the card. Some issuers will not replace the cards, but others will replace them for a fee.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |