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Economy / Regulation

Snow White and the Seven Gift Cards

By Sarah Brodsky on Nov 18, 2009

The Federal Reserve, like a knight in shining armor, is riding forth to protect consumers from a fearsome dragon: gift cards that expire within five years from date of purchase.

If retailers are not informing customers about the terms and expiration dates of the cards, I can understand a regulation like, “Gift cards must state expiration date and applicable fees.” I have no idea where the five-year rule comes from, though, or why retailers should have to conform to it. It sounds like somebody’s fairy tale fantasy of what gift cards should be: No gift card shall turn into a pumpkin before the stroke of midnight.

While the Federal Reserve is granting people’s wishes, I hope they will let Prince Charming know that I can be reached at [email protected].

Topics on this page
Federal Reserve System
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Sarah Brodsky

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