Gov. Bill Ritter is proposing legislation aimed at protecting the value of gift cards and enabling consumers to redeem whatever money is left on them.
“If you buy a $25 gift card today, it should still be a $25 gift card a year or two from now,” Ritter said in a statement.
“Under current law that isn’t the case,” the governor said. “Giant card companies and merchants are able to quietly chip away at the value by deducting fees and costs for non-use.”
Under a proposed law, to be introduced in the 2010 legislative session, fees that can drain a card’s value — and are often hidden — will be largely banned in Colorado.
When a card’s balance goes below $5, a consumer also will be able to redeem it for cash.
Those unused dollars on cards add up to an estimated $5 billion nationally, and eventually the money reverts to the originating companies.
The proposed statute would give Colorado consumers the right to keep their share.
“Gift cards should be a gift to the person receiving them and not a gift to the retailer,” said Rep. Debbie Benefield, D-Arvada, a co-sponsor of the bill. Mark Jaffe, The Denver Post
