Hold on to your Gift Certificates
Under California Law,
They're Still Good - Forevermore
 This Newsletter is my way of sharing information helpful to keeping you and your family safe, informed, empowered or entertained. John Bisnar |
- Did you know that gift cards and gift certificates never expire?
- Did you know that California enacted a law in 1997 that says gift certificates cannot have an expiration date?
- Did you know that this law, Civil Section 1749.5, says that gift certificates purchased after 1997 can be cashed in forevermore, except for limited exceptions such as gift certificates sold for below face value or given as part of a promotional program?
- Did you know that this law applies to Restaurants too?
Not every retailer is aware of the law or obeys it. Merchants like Target and Sunglass Hut already have been sued, have settled out of court and have changed their practices. Other stores are being hit with potential class actions claiming they violate this little-known statute. Most of the big retailers know about the law now and are in compliance, but some of the smaller and mid-size retailers still do not.
Some companies based outside the state of California potentially remain in the dark as well. Only four other states, New Hampshire, Hawaii, Massachusetts and Rhode Island, restrict gift certificate cutoff dates, and their laws are much milder. Many national retailers may be caught off guard by this California law.
According to America' Research Group, gift certificates sales boomed nationwide this holiday season. Ten years ago, the percentage of Americans who gave gift cards or certificates hovered around 30%. But for 2002, the Research Group found that 51% of givers planned to give a gift card or certificate.
With the rise on popularity of gift certificates in the last couple of years new issues arise. How many people have bought cards, say, left them in a drawer for more that two years, pulled them out and thrown them away thinking they are not worth anything. It is estimated that 3 percent to 15 percent of certificates and cards go unredeemed.
Restaurants are also included in this law. The Attorney General for the state of California issued an opinion in November 2000 saying that while the law excepts food products, restaurants actually are selling a service and so must adhere to the expiration-date ban.
So, pass the word on…..Keep those gift cards and certificates forevermore!
Tip of the Month
To ensure a safe and happy 2003, here is the "around-the-house" safety tip that homeowners can resolve to follow this month:
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February: Install or check carbon monoxide alarms.
If you have important information, or an empowering or funny story that you would like to share with my readers please email it directly to me at: jbisnar@bestattorney.com.
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