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  • Add You - Gift Cards Under The Gun, is Retail the Next Target?

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    The Federal Trade Commission is concerned that many companies offering Gift Cards are not disclosing all the terms and fees. The SEC is questioning which quarter the gift card revenue is put into? Should it be listed in the fiscal quarter it is issued or the fiscal period that the consumer actually uses it? Additionally it is widely known that most gift cards have balances that are never used and eventually expire. The industry average is some 15-20% and this means the compani
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    sing all the terms and fees. The SEC is questioning which quarter the gift card revenue is put into? Should it be listed in the fiscal quarter it is issued or the fiscal period that the consumer actually uses it? Additionally it is widely known that most gift cards have balances that are never used and eventually expire. The industry average is some 15-20% and this means the compan
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    nto? Should it be listed in the fiscal quarter it is issued or the fiscal period that the consumer actually uses it? Additionally it is widely known that most gift cards have balances that are never used and eventually expire. The industry average is some 15-20% and this means the compan
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    never used and eventually expire. The industry average is some 15-20% and this means the companies retain that as income.

    Now we see that Regulatory Bodies already trying to control the growth of gift cards;

    http://www.eweek.com/article2/0,1895,2004481,00.asp?kc=EWRETEMNL082406EOAD

    This is problematic as it adds fodder to the lawyers to sue companies, which

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