Gift Cards: Disclosure One Step Removed‪.‬

Gift card purchases have grown significantly in recent years. The growth has been attributed to recipients being able to make personal selections that best meet their needs while reducing the giver's risk of improper selection and wasted time. However, while gift cards have positive benefits for both giver and recipient, certain fees, and terms and conditions involved with their use and nonuse ultimately may impact the level of satisfaction derived. This paper provides background into the use of gift cards and the development of "open-loop" and "closed-loop" cards. Further, it examines current levels of legal protection afforded to consumers. The paper discusses how disclosure and notice, concepts intended to protect consumers, are often neglected or unusable because the actual party at risk is not the party with whom the purchase transaction was consummated. Implications are drawn for those who are charged with creating effective public policy and consumer affairs professionals who wish to provide assistance to both consumers and regulators. **********