jm9496 wrote:Just a reminder that the $50 calling credit falls under the definition of "gift card" in ohio. (see ORC 1349.61) while “Gift card” does not include a prepaid calling card used to make telephone calls, this is prepaid service, not a calling card. As a result, ohio's two year minimum expiration applies. Additionally, A gift card sold without an expiration date is valid until redeemed or replaced with a new gift card.
For Ohio residents, this credit does not expire. For if it did, the issuer is "liable to the holder for any amount that the redemption value of the gift card was reduced, any court costs incurred, and reasonable attorney’s fees."
I am not so sure that your interpretation of the statute is correct. The entire statute appears below. I have highlighted certain portions which might concern me if I were affected either as a consumer or as the entity subjected to a consumer complaint.
"ORC § 1349.61. Gift card expiration dates, service charges, and fees.
(A) (1) Subject to division (C) of this section, no person or entity shall
sell a gift card to a purchaser containing an expiration date that is less than two years after the date the gift card is issued.
(2) No person or entity, within two years after a gift card is issued, shall charge service charges or fees relative to that gift card, including dormancy fees, latency fees, or administrative fees, that have the effect of reducing the total amount for which the holder of the gift card may redeem the gift card.
(B) A gift card sold without an expiration date is valid until redeemed or replaced with a new gift card.
(C)
Division (A) of this section does not apply to any of the following gift cards:
(1) A gift card that is
distributed by the issuer to a consumer pursuant to an awards, loyalty, or
promotional program without any money or anything of value being given in exchange for the gift card by the consumer;
(2) A gift card that is sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes, if the expiration date on that gift card is not more than thirty days after the date of sale;
(3) A gift card that is sold by a nonprofit or charitable organization for fundraising purposes;
(4) A gift card that an employer gives to an employee if use of the gift card is limited to the employer's business establishment, which may include a group of merchants that are affiliated with that business establishment;
(5) A gift certificate issued in accordance with section 1533.131 [1533.13.1] of the Revised Code that may be used to obtain hunting and fishing licenses, fur taker, special deer, and special wild turkey permits, and wetlands habitat stamps;
(6) A gift card that is usable with multiple, unaffiliated sellers of goods or services;
(7) A gift card that an employer issues to an employee in recognition of services performed by the employee.
(D) Whoever violates division (A)(2) of this section is liable to the holder for any amount that the redemption value of the gift card was reduced, any court costs incurred, and reasonable attorney's fees.
(E) As used in this section:
(1) "Gift card" means a certificate, electronic card, or other medium
issued by a merchant that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value, including any electronic card issued by a merchant with a monetary value where the issuer has received payment for the full monetary value for the future purchase or delivery of goods or services and any certificate issued by a merchant where the issuer has received payment for the full monetary face value of the certificate for the future purchase or delivery of goods and services.
"Gift card" does not include a prepaid calling card used to make telephone calls.
(2) "Employer" and "employee" have the same meanings as in section 4121.01 of the Revised Code."
I have not considered any cases that may have interpreted the statute. However, it appears to me that a reasonable interpretation would find that the calling credit is more like a "prepaid calling card used to make telephone calls" albeit in ooma's case, limited by its very nature to calls to other countries.
Second, the card/credit is not being sold. As far as I know, neither ooma nor Costco offer a similar card/credit to the general public.
Third, it appears to be specifically exempt as a promotional item, although perhaps subject to attack since money is being given for the ooma system itself. By comparison, the $199 Costco package offers the hub only, although if I understand correctly, the person purchasing this package may opt to purchase a scout at a discounted price.
Having said all that, and while I personally agree that the terms are not deceptive, I think there may be a legitimate question as to why have any expiration date at all. O.K., chances are few people will ever use the full credit, but then again, those same people will likely never use the credit at all, and thus, the promotion is probably not attractive to these purchasers. The bad P.R. and/or the returned item that must thereafter be sold as a used or refurbished item, even if it only affects a small percentage of purchasers, would seem to outweigh the benefit of having the relatively short termination date.