Consumers Union wants gift card protection

September 11, 2008 2:30:25 PM PDT
A call is sounding to protect gift card holders. The Consumers Union is asking the Federal Trade Commission to protect people from losing money on gift cards when retailers file for bankruptcy.

The group says recent bankruptcies, including Sharper Image and Linens 'N Things, have cost consumers millions of dollars because they could not redeem their gift cards.

Thursday's petition asks the FTC to mandate that retailers set up trust accounts for funds generated from gift card sales that would be used in the event of a bankruptcy.