Some consider gift cards an easy, breezy gift idea for hard-to-buy-for loved ones. Others - particularly anyone who's ever tried to use one, only to be told it was expired - might well consider them a scam.
Politicians in Ontario are beginning to hear the cries of foul from consumers burned by gift cards with expiry dates, and are considering imposing some rules on the paper certificates and wallet-sized plastic cards, the latter a huge retail trend in recent years.
Gerry Phillips, the minister responsible for consumer affairs, said he's listening to the public's cries for action.
"There's some merit in taking a good look at it," Phillips said. "A lot of people end up with gift certificates that are expired and find they can't use it and wonder why. There's a legitimate consumer concern out there."
Before drafting any formal legislation, Mr. Phillips said he wants to speak to retail industry players about their rationale for imposing best-before dates - although he suspects there isn't one.
"I'm not sure they've got a really good defence of why there needs to be a short expiry date on those things," Phillips said.
Peter Kormos, consumer critic for the New Democrats, said the government should take a hardline stance and completely outlaw the practice.
"It's highway robbery," he said. "It's a scam that has to be stopped."
Gift card purchases have skyrocketed in recent years following the introduction of the plastic variety about five years ago.
"They're very popular," said Jane Francisco, editor-in-chief of Wish, a Toronto-based women's lifestyle and shopping magazine. "The upside is the great convenience and the person you give it to gets to choose whatever they want."
Gift cards represent a significant portion of sales for some shops. Starbucks has reported sales of its gift cards, which began in 2001, represent about 11 per cent of the company's North American retail revenues.
But many come with a best-before date, although it varies from retailer to retailer.
Those sold at The Bay and Canadian Tire, for instance, expire 24 months after the purchase date, while Loblaws cards go bad after a year. Some stores, such as Zellers, start deducting a small percentage of the value if the cards aren't used within the time frame outlined in the fine print.
Mr. Kormos said retailers already count on a certain percentage of gift cards being lost, misplaced or just never used.
"Then, for retailers to rely on the fine print and say, 'Oh too bad, so sad, a year has passed and this $100 certificate is worthless,' is outright theft," he said, noting retailers collect interest on the money spent upfront.
"Heck, I've got Canadian Tire money that's been sitting in my basement workshop drawer for the last 20 years that's still as good as the day I got it. Why shouldn't a gift certificate that people pay good money for have the same status?"
Mr. Kormos said he'll introduce a private member's bill in the fall.
Ontario wouldn't be the first jurisdiction to place restrictions on retailers. Several U.S. states have already nixed the concept, including New Hampshire, which prohibits expiration dates on gift certificates over $100.
Not all stores put time restraints.
"It's not customer-friendly," said Lori DeCou, spokeswoman for Best Buy Canada.
Keeping the cards restriction-free makes good business sense, said Wish magazine's Ms. Francisco, noting that from a bookkeeping perspective open-ended cards could pose a challenge for smaller stores.
"I totally appreciate it, and it gives me that warm and fuzzy feeling toward the store," she said. "If I look at it and it says it expired last month my reaction will be . . . of disappointment.