A brief news item out of Madison on Wednesday explained how one lawmaker would address the phenomenon of unused gift cards.
Consumer Reports has found that 19 percent of gift cards aren't used because they've expired or gone missing. That's somewhat similar to what happens with rebate offers. Anyway, State Rep. Fred Kessler, D-Milwaukee, thinks it's unfair that retailers keep the unspent money.
Kessler could sponsor a measure that would eliminate the expiration date, as is being proposed in Minnesota. Instead, he favors one that would send 80 percent of the gift card's remaining value to the state treasury after cards expire in one year. Retailers could keep the remaining 20 percent to cover their processing costs.
Gift cards have become the rage, and for good reasons. They take the guesswork out of shopping while also saving time. And the recipient can get whatever they want, without going through the hassle of exchanging an unwanted item.
But consumers have raised concerns. Some cards carry a front-end charge, there's the hassle of spending them down before they expire, and thieves have found ways to acquire account numbers, stealing the value before consumers even get to the store.
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And now another reason to be skeptical: The belief that state government has some right to the money.
Lawmakers have a clear responsibility to protect consumers. If they think this particular business practice is unfair, they clearly should take action. But giving the money to Wisconsin doesn't constitute a solution -- it's just a money grab that does nothing for consumers.
If this is an unfair business practice, it should be prohibited. But the state shouldn't become an accomplice.
