Thanks to Robert S. Peters of Duff & Phelps for the great article entitled “Daily Deals: The Very Real Risks from Unclaimed Property Laws”. We completely agree that short expiration periods will lead to many consumer backlashes and hefty lawsuits in the future for Groupon and its competitors.
Here is an excerpt:
Also part of the picture are the unclaimed property and consumer provisions at the state level that govern the types of unclaimed property that are required to be remitted to the state to capture unclaimed coupon and gift card value. With at least 42 states facing budget shortfalls, many are looking for new and expanded definitions of unclaimed property to close these gaps.
New Jersey is among the states that have attempted to expand the definition of unused gift cards/certificates reportable to the state by shortening the unclaimed status timeline to two years from five years. The state also requires that merchants gather contact information from the buyer so that the state can track the cards. These rules were projected to raise an additional $79 million for New Jersey’s coffers in 2011.
- Treasurer releases patriotic list of unclaimed property - Huntington Herald Dispatch
- Treasurer urges Illinoisans to seek unclaimed property - Alton Telegraph
- Second leg of unclaimed property reform legislation passed by the Delaware ... - Lexology (registration)
- More than $41.7 million of Unclaimed Property returned to Missourians by State ... - The Missouri Times
- The State Compendium of Unclaimed Property Practices - Credit.com News (blog)
- Couple Accused of Filing Bogus Claims for Unclaimed Property - WCTV
- State unclaimed property fund is Ponzi scheme, lawsuit alleges - Tulsa World
- Delaware Senate Makes More Changes to Unclaimed Property Law - Wall Street Journal (blog)
- Plains All American Takes on Delaware Over Unclaimed Property - Wall Street Journal (blog)
- State to begin sending checks to those with unclaimed property - WISN Milwaukee