WPCNR'S ADAM IN ALBANY. By New York State Assemblyman Adam T. Bradley, 89th District. May 2, 2004: Many consumers are discovering the hard way that all gift certificates are not created equal.

Because certain companies impose hidden fees that nibble away at the face value of a gift certificate after certain periods of inactivity, I am a sponsor of new legislation which would protect consumers from hidden fees and undisclosed conditions – that have become all too common – with gift certificates and cards.

The bill will ensure consumers know exactly what the terms are when purchasing a gift certificate, and more importantly, that they get exactly what they pay for.

This new legislation would require vendors and retailers to eliminate any retroactive fees and would only allow them to collect monthly service fees after a gift certificate or gift card is unused for 13 months (A.10333). Another measure requires vendors to disclose the terms and conditions of a gift certificate at the time of purchase (A.10334).

Already, the attention around this issue has prompted two large sellers of gift cards – Starbucks and Blockbuster – to eliminate fees on their own accord. Unfortunately, many other companies are keeping them, and in some cases, increasing fees.

As gift cards become an increasingly popular alternative to hand-picked gifts, many companies have imposed fees to increase profits. This practice is wrong, and this  legislation will set proper guidelines to protect consumers.