Legal Concerns for Catalogers ’07: Lawyers Outline Key Use-tax, Gift Card Issues

3. Laws on breakage prevent marketers from gaining the benefit of breakage, also known as escheat laws.

Among the recent legal developments involving gift cards, Eisenstein pointed to the following:

*The FTC recently sued Kmart for inadequate and false descriptions of terms and conditions. What’s more, Kmart charged $2 a month to consumers who didn’t use gift cards (in other words, a $50 gift card’s value would diminish monthly to $48, then $46 and so on).