Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
(KSL News) If you plan to buy gift cards this holiday season, consumer advocates are sounding severe warnings that are connected to the downturn in the economy.
Shoppers spent an estimated $26 billion on gift cards last year. But that number is expected to drop about six percent this year because shoppers are more focused on sale merchandise.
Scott Krugman, with the National Retail Federation, "If I'm a gift buyer and have a choice between a $50 sweater on sale 40% off or a $50 gift card not on sale, I might lean more toward the sweater."
The unstable economy causes other concerns. The retail federation says in most cases where there's reorganization under Chapter 11 bankruptcy, like with Circuit City, the companies will honor their gift cards.
Something else to be aware of: swindlers who make note of the number on the back of the gift card in the store, check online to see if it had been activated and then cash in the card on the retailer's website.
For general information on gift cards and tips to keep you safe this season go to www.nfr.com/holidays.
