CHICAGO, Dec. 29 (UPI) -- Illinois State Treasurer Judy Baar Topinka called for legislation Monday to protect consumers from gift card and gift certificate fees.
"While gift cards offer a great convenience for people looking for a perfect gift for that hard-to-buy-for person, consumers need to be protected from the fees and charges that may be associated with these cards," said Topinka. "It becomes kind of an inadvertent, I use that term generously, profit center which may not be on the up and up in the long run."
Topinka supports a bill to require retailers to drop inactivity and service charges or turn the collected fees over to the state. Unused portions of gift cards would be reported as unclaimed property.
California and Massachusetts recently passed similar legislation and Sen. Charles Schumer, D-NY., is considering proposing a federal bill.
Retailers would have two choices: remove all charges and fees and continue to honor all gift certificate and gift cards forever, or remit all unused gift certificates and gift cards to the state treasurer.
Topinka successfully pushed for consumer protection legislation in 2001 to drop expiration dates from gift certificates and gift cards.
