Legislation from State Representative Peggy Krusick (D-Milwaukee) would ban companies from allowing gift cards to expire or charging hidden fees for customers to cash them. Krusick says consumers who pay $50 for a gift card should actually get that money back from the store, regardless of when the card is used.
The Milwaukee Democrat says many companies are taking advantage of the fact that some cards are never used. She says companies are making millions of dollars off the estimated 10-15 percent of gift cards that may go unused for awhile.
Some retailers have argued that allowing gift cards to remain out there can disrupt their financial records. Krusick says state law would still protect them, by allowing that revenue to be taken off of financial records after a certain number of years.
State Representative Suzanne Jeskewitz (R-Menomonee Falls) is a co-sponsor of the proposal.
