Nevada lawmakers seek ban on gift card time limits

Assemblyman David Parks says he'll propose a bill to bar retailers from putting time limits on gift cards that cause them to go down in value.

Parks, D-Las Vegas, came up with the proposal after trying to redeem a $25 holiday gift card and being told it was worth just $18.

Many malls - along with some retailers and restaurants - set expiration dates on their gift cards, or they start deducting money if they aren't used within six months or a year. But Parks said the practice is unfair.

Assemblyman Joe Hardy, R-Boulder City, also submitted a bill draft request to ban retailers from refusing to redeem gift cards at their full value.

"My personal feeling is gift cards are cash, and cash shouldn't expire," Hardy said. "I have a hard enough time knowing where I put the gift card."

Nevada law does not yet address expiration dates or dormancy fees on gift cards, but state Treasurer Brian Krolicki said he believes the fees are "highly abusive."

"You've bought an asset," Krolicki said. "What gives a corporation, the retailer, the right to essentially exhaust that asset you've purchased?"

Krolicki says Congress should deal with the problem. But many states, responding to consumer complaints, are trying to solve the issue on their own.