RE-GIFT WITH CONFIDENCE

Author: Mark D, Hofstee
Date: 01/12/2010

It is hard to believe but the holiday season is now behind us. With record numbers of shoppers purchasing gifts online, it is clear that many were not spending countless hours combing the malls for the “perfect gift.” Instead, many took the easy way out and gave gift cards.
Gift cards, as we all know, are a great way to show someone you care or you’re at least paying attention to where they like to shop or dine. If you’re anything like me, you wait until the last minute to pick one up, knowing that although you have several gift cards that you were given last year but never used still sitting in your desk drawer, the temptation to re-gift them is outweighed by the potential embarrassment you would suffer if one you ‘re-gifted’ was expired. The good news for all us procrastinators is that the Michigan Legislature has enacted a law that protects the re-gift.
In November 2008, the Michigan Consumer Protection Act was amended, prohibiting retailers from imposing inactivity, transaction or other service fees that would decrease the value of a card and also extending the life of a card to 5 years from the date it was purchased. Prior to the change in the law, most cards became worthless within a year or two. There are a few exceptions to the new rules including cards issued through banks because they are controlled by federal regulations. But, for the most part, if your gift card was purchased anytime after November 1, 2008, you are free to pay it forward with confidence, knowing that the beneficiary of your generous re-gift will be able to enjoy the gift as much as your relative or co-worker originally intended you to!