TALLAHASSEE Fla. A bill outlawing expiration dates and dormancy fees on gift cards issued by restaurants and other retailers is awaiting the signature of Gov. Charlie Crist following its unanimous passage by the Florida Legislature on Wednesday.
It is not known if Crist intends to sign the measure into law, but local media noted that the Republican and former state attorney general has been a champion of other consumer causes.
Red Lobster parent Darden Restaurants Inc., the largest restaurant operator in the state, disclosed last month that it would stop charging fees for unused cards under a settlement with the Federal Trade Commission. The agency had threatened to seek $31 million in sanctions against the casual-dining giant because some customers did not know a monthly fee would be deducted from the value of their cards if they did not use them for a prolonged period. Some experts have estimated that as much as 10 percent of gift cards' value would never be redeemed. Darden indicated in a securities filing that more than $100 million spent on gift cards and gift certificates for its restaurant concepts had not been redeemed.
In addition to Red Lobster, Darden operates the Olive Garden, Smokey Bones, Seasons 52 and Bahama Breeze chains.
The Orlando Sentinel reported that the Florida Retail Federation, a traditional opponent of gift-card legislation, did not oppose the bill that passed because of the measure's popularity. Twenty-nine states have reportedly considered legislation this year to ban expiration dates and dormancy fees on gift cards, which were loaded with an estimated $80 billion in credit last year.
