YONKERS, N.Y. — Consumer Reports will launch a public education campaign warning holiday shoppers of the pitfalls associated with the gift card today by running a full-page ad in the New York Times. The ad advises shoppers that unredeemed gift cards can be easy money for retailers and lost money for consumers. Research firm TowerGroup, Needham, Mass., estimates that nearly $8 billion was lost last year due to unredeemed value, expiration or loss of gift cards, Consumer Reports said. Consumer Reports will also launch a holiday shopping hub on www.ConsumerReports.org that will offer tips on how to avoid gift card snags and provides a place for consumers to share their stories about problems with gift cards. According to Consumer Reports’ latest survey, 27% of last season’s gift card recipients have not used one or more of these cards, up from 19% at the same time last year. Gift cards are expected to be a major component of holiday giving with estimates putting sales at more than $100 billion in 2008. The survey also found that when the time came for consumers to redeem their gift card, the majority of also spent their own money, with 60% spending more than the value of the card.
Consumer Reports Launches Educational Gift Card Campaign