Sadly, it was only a matter of time before this “revenue generating idea” popped into someone’s head.
One has to wonder if this is not one of those “feel good win targets”. Its the tactic of pushing the thing you really want and putting something up so stupid that you get people to focus on that instead:
GOV-”Sales taxes are going up and we are also going to tax your dog.”
Talk radio-”Thats crazy! Protest! Call your representative! Petition! Organize!!!”
GOV-”Ok, Ok, we give in. No new taxes...on the dogs.”
Talk radio-”Woohhoooo we win!!!”
GOV-”suckers...”
American express offered to produce $50 gift cards for less than $50 for one company. The reason? It can be statistically measured how many of those certificates will never be redeemed. They pocket the difference.
The states desire to confiscate the funds after four years is a legal problem if the gift card has no expiration date. Basically they are saying that we want the money but if the guy ever does use it after the four years we’ll refund it. Otherwise it is ours.
It is tacky and stinks. It also completely destroys the profitability formula. It eliminates the main incentive for companies offering gift cards.