Wait, so he had gift cards worth 259 000 USD?!

Simon brazenly devalued gift cards by hundreds of thousands of dollars. Now, the company's actions would be beyond the state law enforcement because it has shifted to cards issued through a national bank, deemed subject only to federal law.

These gift cards are complete scams like I have said before. Now companies are going out of their way to circumvent laws meant to protect you and to keep the gravy train going for themselves.

DO NOT BUY GIFT CARDS!!!!

I love Richard Blumenthal for this, even though I haven't been to the Crystal Mall in years.

Simon Property, who would have thought. (lol, snorts the former commercial real estate flunky)

Speaking as someone who once worked for a company that handled these kinds of transactions (and being one of the coders that worked on the backend system for these), yes. They are a scam and should be avoided at all costs.

Gift cards have only a downside for the consumer, NO upside. None. In fact, they have several downsides. I made sure to specifically put "no giftcards" on my Christmas list this year. And it worked.

I'm wondering when--in this crappy economy--companies will start offering a percentage off on gift card sales. It's guaranteed to either be spent (and then some) in the store, or it will expire. With all the coupons companies send out, I'm surprised they haven't started on the gift card discounts. Seems like the same idea, but in reverse. Bed Bath and Beyond could sell gift cards at 10% below face value and stop sending out 20% off coupons. It'd probably be a wash. Just an idea--companies are always looking for these so-called continuity programs intended to get you back into the store ASAP.

(They might attach a stipulation that it's invalid for the first week after purchase, which would stem the ability to immediately flip them for a purchase in the moment.)

I hope people get their money back in cash and not more Crystal Mall gift cards. As far as shopping goes I'd call Crystal "sub-par" at best. And I like malls.

@Ash78: Yeah I'm sure I've left behind at least $1 on about every gift card I've ever received, multiply that by a few million people and it doesn't take a math wizz to see where the profits are coming from. I'm taking a similar approach and just saying no from now on.

@Ash78: The companies don't offer them yet, but for the adventurous, there are plenty of discounted gift cards on eBay.

@Ash78: Our local businesses actually do this through one of the radio stations. It started with mostly restaurants but the bike shop, a jewelry store and a few others have joined too.

@Ash78:

BB&B is a bad choice for an example. Their "20% off any thing in the store" coupons are actually "20% off one thing in the store", due to exclusions.

Better to go with something like Best Buy, which, while it does not have coupons like that, does have quite a few gift cards.

@BlondeGrlz is having a BlondeBoyz!:

well, unfortunately, it's the only indoor mall around anymore.. ever since the New London Mall was turned into an outdoor venue.

I like to at least take my soon to be 2 year old to the cushy play area in front of Macy's

odd, this is the 2nd major consumerist story in a month here in southeastern ct.. are we getting that bad?

@Dracoster:

No, Blumenthal is our awesome Attorney General. he's filing on behalf of those people who had cards.

Well I never went that far east, but all the malls I've been to in CT-Milford, Trumbull, Clinton, etc.-have been pretty dysfunctional. Maybe having a mall on 95 is a recipe for disaster.

It seems like every month Richard Blumenthal is announcing a new lawsuit or settlement aimed at helping consumers (that or attacking NCLB). While it's great to have an attorney general who genuinely seems to be on the customers' side, is this common in other states? I would think attorney generals would have weightier issues to consider.

@jchabotte: I like to think it has more to do with an especially litigious and newsworthy AG than us as people.

And after April 1st be prepared to meet me in person at that play area.

@Ash78: This could be problematic, especially if people use the gift cards to buy more gift cards. Suppose a company offered 50% off gift cards. (That's high, but it makes the math easy). I go in and buy a $20 gift card for $10. The next day, I buy a $40 gift card with my $20 gift card. Then, I get an $80 gift card, 50% off, with my $40 gift card. Pretty soon I have a plasma screen TV for $10.

@jchabotte: Hopefully he isn't Spitzering hookers in his spare time.

@samyoed: New York had an Attorney General like that once. He became governor and got caught with his pants down.

Blumenthal is amazing. The man is one of the reasons that gift cards in the state no longer have expiration or loose value over time. He seems to see them for the scam they are.

He's also been outspoken against the ridiculous energy rates we pay. We love him here.

@Alex Chasick:

The one in Manchester isn't so bad. For a mall.

@Xkeeper: Interestingly enough, at our local store we hit the jackpot with those coupons.

My husband works in offices next to a BB&B. Everyone in his office brings in the 20% coupons from home, and they keep a big bin of them at the front desk. Whenver we need stuff, he brings a handful of the coupons from the bin at work, and for three years, cashiers have let him use a coupon for each item all at the same purchase.

When we got new bathtowels, he brought eight of those coupons, one for each towel. They just put them through. Same thing when we bought curtains. We brought in a coupon for each panel (each window needed four panels.) They let him put through expired coupons, too. Same with the other employees where he works. I wonder if any other stores do this?

i love CT for this, but i also hate it. let me explain.

i'm currently trying to implement a "stored value" VISA card program at my credit union & b/c of the way the laws are, the best choice for my members violates state law. the "compliant" choice sucks.

fee: card A / card B
======================================
card cost: $6.95 / $3.00
monthly fee: $2.95 / none
inactivity fee: $5.95 per mo. after 6 mos. / $2 per mo. after 12 mos.
expiration: 12 mos. / 24 mos.

now check it out - card program A is compliant with state law b/c it is issued thru a national bank. card program B is NOT compliant b/c it is not issued thru a national bank. & i can't find a single card vendor that is willing to issue stored value VISA cards that don't expire, primarily b/c VISA-branded cards (even gift cards) MUST carry an expiration date.

so, there's my story. love the law from a consumer standpoint, but as great as it is, it doesn't always provide the best value to the customer.

@BlondeGrlz is having a BlondeBoyz!:

The wife and i would probably like that.. could always use new people to hang out with.

@Ash78: Thee are number of companies that though the holiday season offered a $20 gift card if you purchased $100 worth of cards.

@BlondeGrlz is having a BlondeBoyz!: Sub-par? Wake me when they dethrone Waterbury for the title of Saddest Food Court in History.

@Alex Chasick: Milford's not that bad, but Trumbull is a fucking nightmare. Nothing like making you walk all the way around a mall to get to two stores that are normally pretty close to each other.

Meanwhile, Milford and Meriden's malls are emptying at a mind-blowing pace. Ah, Connecticut.

I suspect there was a heck of lot going to lawyers, though.

@BlondeGrlz is having a BlondeBoyz!: Sad to hear that the ol' Crystal Mall seems to be in decline. I haven't been there in about 20 years, but when it first opened it was pretty awesome - y'know, for a mall...

That's what I love about CT, I've grumbled about a few things every now and then, and people suggest calling Blumenthal's office. people really have that much faith that they will be heard, and its stories like this that cement that idea.

cheers on a job well done Richard Blumenthal (and your office)

@savdavid: the ag's office prosecutes the case & they're already being paid a salary, so i believe all the money goes into a fund that people can make claims against. the remainder will end up in our black hole of a state budget.

the most dangerous place in connecticut is in between richard blumenthal and a camera.

@Blueskylaw: Especially when the companies go under, you're screwed.

@lastingsmilledge: You mean besides Bridgeport? What if Dickie B's in Bridgeport and you're standing between him and a camera, are you well and truly fucked? :P

So did the mall not disclose this?