Discount restaurant gift card

Rules for gift-card sales bagged by committee

DENVER - Consumers will have to continue to do their own research into the fees and expiration dates associated with gift cards, the fastgrowing electronic alternative to paper gift certificates.

Members of the House Business Affairs and Labor Committee voted 7- 6 to defeat House Bill 1144, legislation that would have stopped retailers from putting fees and expiration dates on the popular cards.

During the past holiday season, gift cards outpaced apparel as the most-purchased item at retail stores.

Opponents say the measure was too complex and would have stifled competition.

"I think it comes down to basically caveat emptor," said Rep. Larry Liston, R-Colorado Springs, referring to the Latin term for "let the buyer beware."

Liston voted against the bill.

The bill's sponsor, Rep. Debbie Benefield, D-Arvada, said she came up with the idea when she realized that a major department store assessed a $1.50-a-month fee against her gift card if she didn't use it within two years.

Such fees are common on gift cards, whether they are for clothing stores, restaurants or health spas.

But representatives from the retail and restaurant industries -- the two biggest purveyors of gift cards -- said the bill would have interfered with private business transactions.

"You cannot go into a retailer and barter what the price of a particular item will be," said JoAnn Groff, president of the Colorado Retail Council. "There is a stated price, and there might be a discount or a sale that day. It isn't negotiated, and neither are gift cards."

Groff said the terms of the gift cards usually are printed on the card in fine print, and it is up to the consumer to determine the limits on the card.

It's an argument that a majority of lawmakers on the committee supported.

"My husband and I are the worst offenders," said Rep. Fran Coleman, D-Denver. "We get gift cards and then we never cash them in. But you know what? It's our fault."

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