Beware the gift cards of December

Ah, tis the season for gift-giving and for a lot of us, that means gift card giving. Let's face it... they're easy and it's hard to go wrong. They seem to be the one thing that's good both to give and receive.

But to make sure your thoughtful gift doesn't turn into a lump of coal, you need to be a savvy consumer. At present, there aren't any laws in Maryland specifically aimed at gift cards and the retailers know this. Because of that, the gift cards you buy may have hidden fees and secret expiration dates. By the time great aunt Sadie goes to use her gift card at Victoria's Secret, there might not be enough left on the card for her ultrasmooth low-rise string bikini.

The General Assembly did, thankfully, address gift cards last year and passed some basic legislation on the matter. Still, that law doesn't take effect until July 2006, if at all. Retailers are expected to do some heavy lobbying this session to see to it that they don't have to abide by any rules at all.

Basically, the new law would make it so that the gift card cannot expire or charge fees in the first three years and requires certain disclosure should such conditions exist after that time.

Even in its current form, last session's legislation doesn't go far enough. For instance, the new law only applies to individual retailers and not mall gift cards. Similarly, gift card issued by banks or credit card companies are excluded from the new law.

One final thing to consider: You don't have much recourse if you buy a gift card or a gift certificate to a business that shuts down or files bankruptcy. If you charge the purchase you may be able to dispute the charge with your credit card company but otherwise, you're probably out of luck.

This information should not discourage you from buying gift cards because hell, we all love them. Instead, you just need to make sure you know what you're giving and getting. Happy shopping.