Bass Requests Hearings for Gift Card Legislation
WASHINGTON 11/18/04-Rep. Charles Bass, R-N.H., requested a hearing Wednesday to work on federal legislation that would ban fees and expiration dates on bank-affiliated gift cards.
Although state law is used to regulate store-specific gift certificates, Bass said he believes there is a need for the federal government to address the issues presented by bank-affiliated gift cards, such as the Simon Visa Gift Card. ” Our role is to ensure that companies are unable to sidestep laws enacted by states such as New Hampshire,” Bass said in a press release. “This conflict between state and federal law illustrates a need for the federal government to address the consumer’s rights when purchasing gift cards affiliated with national banks.” Bass requested the hearing by the Energy and Commerce Committee of which he is a member.
If legislation is introduced and passed, it would nullify Simon Property Group’s claim that its cards are regulated under federal law and not subject to state law. New Hampshire’s law prohibits expiration dates on store-specific gift certificates as well as service charges and administrative charges that reduce the value of the certificate. The state has brought a suit against Simon Property Group Inc, charging that its card policies violate state law.
Shelia Atkins of the Better Business Bureau said she could not comment on whether federal legislation regarding gift cards is needed, but said consumers need to be do research on bank-issued cards.
“It’s in the consumer’s best interest to inquire about these gift cards. Consumers need to know if there’s an expiration date. I think up until a year ago, consumers didn’t know that gift cards expired,” Atkins said.
According to a survey by the National Retail Federation, the average consumer will spend 11.5 percent of his holiday budget on gift cards and 74.3 percent of consumers will purchase a gift card during the holidays.
