The Increasingly Complex Regulation Of The Simple Gift Card

Gift cards are a multi-billion dollar industry and one of the fastest growing consumer products in the marketplace today.¹ Indeed, most major retailers, restaurants and other goods and services providers have seen a significant increase in the use of gift cards over the past five years. Not only are cards being purchased as gifts for hardto- buy-for individuals, they are also used frequently by consumers to pre-pay for goods and services purchased on a regular basis, such as coffee and fast food. The ability of businesses to customize gift cards has also increased their use in customer appreciation, incentive and employee rewards programs.

When someone purchases a gift card, they enter into a future performance contract with the supplier. The supplier receives payment for the future purchase of goods or services, while the purchaser or subsequent holder of the card acquires the right to obtain goods or services from the supplier at a future time. General rules of