December 31st, 2007

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The Gift of Grab

Monday, December 31st, 2007

Many of us gave and/or received gift cards during the holidays. What a great innovation. Don’t know exactly what someone wants? Give a gift card for a store they like; they can pick out their own gift.

Customers love ‘em and stores love ‘em. Stores can count on that revenue, and, better yet for retailers, most folks spend in excess of the gift card. And when someone forgets to use the card at all or leaves a balance on it, once the card expires, the store keeps that money.

I just learned that in Maryland there’s a law that gift cards must expire after four years.

Now here comes Maryland Delegate Joseline Peña-Melnyk to do something about this. Like me, you’re probably thinking: “Why do these cards have to expire? Change the law. Leave stores and customers free to choose their own terms of trade.”

But Peña-Melnyk isn’t seeking to change that law. No sir. Instead, she’s seeking to grab the money from expired gift cards. All of it! Every penny.

In defense of her House Bill 30, Peña-Melnyk asks: “Wouldn’t you rather know that if you lost a card, or your card has expired that that money will be put to use for public education?”

Seems only two groups in our society think they should get a cut of every economic transaction: the mob and the politicians. But at least the mob doesn’t try to take 100 percent.

This is Common Sense. I’m Paul Jacob.