New MI law regarding gift certificates

[Bee+P ? TTC #1 again]

In July, Michigan passed a new law requiring no less than a 5 year expiration date on gift certificates. The new law takes effect November 1, 2008.

I know they were working on trying to require that money from unredeemed gc go to the state - but I haven't heard anything more on that issue...

 

[I Love Jesus_32]

5 years! I think this is getting a bit ridiculous.

Is there anyway around this? Loophole?? Because gift cards seem to not be held to those laws??

 

[Josh]

from what I've read - they state gift certificates or gift cards.

unfortunately, I don't think there is a way around it. :undecided:

personally, I think it's completely ridiculous. This new law combined with the recent gift certificate drama I've been experiencing :roll: I've decided to discontinue selling them beginning November 1.

Everything I've read goes on about protecting the consumer, all I really think they're doing is hurting small businesses. Way to go Michigan... this'll help turn our state around :roll:

 

[bettierage]

5 years! I think this is getting a bit ridiculous.

Is there anyway around this? Loophole?? Because gift cards seem to not be held to those laws??

Gift cards are held to a never-expire standard in WA as well. If somebody gives you cash for value, that value cannot expire unless the merchant refunds the cash.

 

[Chalise N]

Last I had checked, here in Massachusetts, gift certificates/cards must be valid for 7 years from date of issue.

 

[krystalclare]

What if you don't call them a gift certificate? What if you call them a prepaid massage package? It is just a package of one.

Different rules apply to packages than gift certificates. You can sell them to your regular clients or walk ins.

You can put a use by date on packages, most everyone does.

You could sell these prepaid sessions to current clients only. Heck, you could sell them in packages of three only for a small discount. If someone wants to give away one or two of the prepaid certificates thats fine, but they should be marked as "pre-paid massage" and not a gift certificate. Offer a small discount for buying 3 at a time. Yes, you will be making a small amount less per service, but you are also keeping your client coming back to you if they use the pre-paid certificate for themself. Include a disclaimer that says something like, "a $15 reactivation fee will be required for all pre-paid massages redeemed after their expiration date."

Is something like this doable?

 

[Katie M]

What if you don't call them a gift certificate? What if you call them a prepaid massage package? It is just a package of one.

Different rules apply to packages than gift certificates. You can sell them to your regular clients or walk ins.

You can put a use by date on packages, most everyone does.

You could sell these prepaid sessions to current clients only. Heck, you could sell them in packages of three only for a small discount. If someone wants to give away one or two of the prepaid certificates thats fine, but they should be marked as "pre-paid massage" and not a gift certificate. Offer a small discount for buying 3 at a time. Yes, you will be making a small amount less per service, but you are also keeping your client coming back to you if they use the pre-paid certificate for themself. Include a disclaimer that says something like, "a $15 reactivation fee will be required for all pre-paid massages redeemed after their expiration date."

Is something like this doable?

I know in WA state that is technically not legal, as it is still something that a person paid for and an expiration date of any kind would mean that the merchant has accepted money and delivered nothing in return. But it might fly in another state.

 

[Adr3naline213]

maybe i'm missing something here but why is this such a big deal? do you not think that if someone purchases a g/c that is should always be redeemable?

i can't stand it when i receive a gift card/certificate and there is an expiration date on it. why on earth should a place be allowed to take someone's money and then not have to provide the goods/services?

i always tell people who purchase my gift cards that they never expire.

how does not having an expiration date (or a 5 year exp date) on a gift cert hurt small businesses? that statement just sounds crazy to me!