By JAMES FINK
Business First

One year after putting retailers on notice, Sen. Charles Schumer said he will be introducing federal legislation to impose mandated standards for gift cards.

Under the proposal Schumer unveiled Wednesday afternoon at the Walden Galleria, all gift cards would have at least a five-year life span, eliminating the practice of declining values and hidden fees for those cards not used within a reasonable period of time. Schumer said the bill, which he dubbed the "Fair Gift Card Act," could be enacted by federal lawmakers in time for next year's peak holiday shopping season.

"The truth is, gift cards should come with a warning attached," Schumer said. "You need to know where to look and to look carefully with gift cards."

Schumer said his office is frequently flooded with calls from angry consumers who were giving gift cards only to find that they have a limited life or have a decreasing value after a given period of time, sometimes less than six months.

"You don't get the complaints about (gift cards) on Christmas morning," Schumer said. "You hear about them in March when someone goes to use them."

Last year, in a similar setting at the Walden Galleria, Schumer asked retailers to be more forthright with information about their gift-card programs. A small handful obliged. Most did not.

"Last year we asked retailers to do it on their own," Schumer said. "This year I am introducing legislation."

Gift-card sales are projected to be an $88.4 billion business this holiday season nationally and about a $24 million business locally. Schumer estimated that 30 percent of the cards never get used.

Until Schumer's legislation is passed, New York's senior senator warned consumers to ask questions before buying gift cards this year, including if they come with an expiration date, decrease in value after a given period of time or have hidden extra fees.

"You have to ask, because (stores) are not going to tell you," Schumer said.