consumer group warns about gift cards

A powerful consumer organization is taking on retailers over the issue of unredeemed gift cards.
Amid the most popular gift-card giving season of the year, Consumer Reports has taken out full page ads in the New York Times today advising shoppers to think twice before choosing a gift card.

More than a quarter of all gift cards is lost, expires or is just never spent, the consumer advocacy group warns.

That adds up to an estimated 8billion dollars (US) out of consumers' pockets, the organization says. Gift cards have become an increasingly popular choice for holiday shoppers ever since retailers began replacing paper gift certificates with plastic cards that look like credit cards.
Sales of such cards are expected to reach 100billion dollars (US) by next holiday season, the consumer group said.

In Canada, shoppers bought 1.26billion dollars worth of gift cards last year, according to market research firm NPD Group Canada Inc. As many as 40 per cent were still outstanding by the end of March, the firm also said.

Despite their popularity, there have been problems with gift cards from the beginning. Many consumers complained they expired too soon, or monthly fees gradually reduced their value to nothing.

Many lawmakers, including Ontario's provincial government, eventually banned such fees and expiry dates.

In my opinion, I also think that before buying a gift card, you should think and think. I had an experience when I did not use my gift card ($30). I was not able to use my gift card because of the expiry date. I think that when making gift cards, there shouldn't be an expiry date on it. Even though business is earning a lot of money on selling gift cards, I think that they should take care of the consumers as well.