Caveat emptor

How many of us have gift certificates lying around in drawers? Many have been received over the holidays and many will be purchased as gifts for Valentine’s Day. Shoppers beware!

Gift certificates bring immediate revenue to the merchant and make gift giving easy. Another big advantage of gift certificates is that many are never redeemed for services and become pure profit.

It has been reported that Wal-Mart is holding $1 million in unclaimed gift certificates owned by North Carolina residents alone.

The California legislature didn’t appreciate this potential business windfall and passed section 1749.5 of the California Civil Code, stating that "On or after Jan. 1, 1997, it is unlawful for any person or entity to sell a gift certificate to a purchaser containing an expiration date. Any gift certificate sold after that date shall be redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder."

Since we live in California, we’re in luck.

It’s against California law to put time limits on gift certificates (with few exceptions, including gift certificates for food, from nonprofit fundraisers and from awards programs).

This is a secret many merchants don’t want you to know. Some may even insist it’s not so.

As a buyer, don’t buy a gift certificate with an expiration date.

True, some merchants may be unaware of the law. Some, however, choose to continue to cheat the public and disregard the law. Such was my experience with a local spa. I approached the owners, who were unwilling to honor the balance of a gift certificate, with a copy of the written law. "We’re a small business and we can do whatever we want," I was told.

A responsible merchant shouldn’t just tear up a gift certificate that you’ve put off using.

They have actually been using the cash in their business all this time and shouldn’t get a windfall for nothing. Most merchants will recognize the need to protect their business reputation.

Unfortunately, others will let arrogance get in the way of common business sense.

Cris Carmi

Agoura Hills