Tuesday, November 13, 2007

Retail industry gift card scam

Last year some friends and I looked into starting a non-profit organzation that would get gift cards out of people's sock drawers and into the hands of families in need. It turned out to be a bigger challenge than we anticipated and there are some people trying to do similar things already. We had the idea when we saw news pieces that reported on the 8 billion dollar yearly profit that the retail industry makes off of unredeemed gift cards. They refer to it as "breakage".

This week Adage reported on the above ad that Consumer Reports placed. I would personally like to thank Consumer Reports for taking a stand and spending some money to alert people to this deplorable scam.


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