Incentive - June 2009 - (Page 57)

Electronics: Green and Slim Are In PAGE 59 Nesting Trend Revs Up Tool Redemption PAGE 61 From HDTVs to laptops, look for thin and environmentally sound Lighter, longer-lasting lithium ion batteries an incentive to upgrade Feds Crack Down On Gift Card Fees But incentive and consumer loyalty programs are specifically excluded from the stringent limitations on dormancy fees and expiration dates By Leo Jakobson card industry, banning or limiting fees and practices deemed abusive, such as crediting payments to the portion of an account balance with the lowest interest rate first. But tucked into the legislation is Title IV which amends the Elec, tronic Funds Transfer Act to ban the monthly fees some gift- and debit-card issuers impose if a card is not used for a set period, typically one or two years. The act also bans expiration dates of less than five years. Many states have Surrounded by lawmakers, President Barack Obama signs the passed similar laws in Credit CARD Act of 2009 into law on May 22 recent years, leading tions, including one that specifito a patchwork of regulation cally targets cards distributed across the country. And pressure under employee or consumer from consumer groups has led loyalty programs. most major retailers to eliminate The Credit Card Accountability these provisions if they had them. Responsibility and Disclosure The legislation’s ban on dor(CARD) Act of 2009 primarily mancy fees includes an exclusion focuses on reform of the credit for the corporate and consumer L ast month, President Barack Obama signed into law a bill that severely limits dormancy fees and expiration dates on gift cards, gift certificates, and prepaid cards. The law has two notable excep- awards industry. The bill states: “[I]t shall be unlawful for any person to impose a dormancy fee, an inactivity fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card.” Electronic codes of the kind redeemable online, just like Americans buying more gift cards, but in smaller denominations 57 52 48 16 Percent of Americans who say they have purchased a gift card in the preceding 12 months, as of April 2009 Percent of Americans who say they have purchased a gift card in the past year, as of October 2008 Percent of Americans who spent more than the value of a gift card when redeeming it Percent of Americans who spent less than the value of a gift card when redeeming it Source: “Gift Card Buying Trends: Shopper Intentions and Purchase Behaviors 2009” by National Research Network-The Hartman Group, April 2009, www.hartman-group.com incentivemag.com | June 2009 | Incentive | 57 http://www.hartman-group.com http://www.incentivemag.com

Table of Contents for the Digital Edition of Incentive - June 2009

Incentive - June 2009
Contents
Editor’s Note: Motivation 2.0
Headlines
Cover Story: 8th Annual Industry Roundtable
Interview: Roger Dow
Research: Sales IQ
Marketing Trips to Success
HR Guide to Incentives
Strategies: In the Loop
Primer: Cash Is Secondary
Case Study: Centennial Comm. Connects With Gen Y
Travel News: Where To Go
Captivating Colombia
South Africa Beckons
Potentials: Here and Now
Electronics: Thin and Green Are the Trends
Power & Hand Tools: Building Up When Economy’s Down
Concern Grows Over A Genuine Scare: Luxury Counterfeits

Incentive - June 2009