Gift cards may be regulated for deception

WASHINGTON, Feb. 18 (UPI) -- Two U.S. representatives are looking into whether the gift card industry engages in deceptive marketing by not disclosing expiration dates or fees.

In a letter to Rep. Charles Bass, R-N.H., Federal Trade Commission Chairwoman Deborah Platt Majoras said a failure to disclose the fees or expiration dates are probably intended "to mislead consumers," The Washington Post reported.

Bass and Rep. Joe Barton, R-Tex., chairman of the House Energy and Commerce Committee, asked the FTC to compare complaints of gift card processing to the industry's handling of disclosure.

Bass said Friday he wants a hearing to see if a uniform disclosure law is necessary.

The FTC may not be able to regulate gift cards, a growing trend in gift giving with more than $110 billion in sales last year for Visa, MasterCard, American Express, Discover and others.

In the FTC letter it sited a Montgomery Count Division of Consumer Affairs survey that found nine of 30 gift cards surveyed had expiration dates and/or fees.

Six of those didn't let customers know of them before they made a purchase.