Gift-Giving Gotchas

The smiling salesman deftly landed the miniature helicopter in front of the holiday kiosk in the mall. "I’ll take one," I said, and handed him my credit card. Three weeks later, my nine-year-old son was in tears when we couldn't get the new toy to work. I returned to the mall, but the kiosk was gone.

 

Apparently, the only mini-chopper that actually worked was the one on display. The rest were manufacturer rejects that were supposed to have been destroyed. The local newspaper reported the next day that several hundred shoppers had purchased faulty toys from the same vendor, who had disappeared into the winter snow.

 

Luckily, I lost only $17.95 for the faulty whirly-bird; it could have been worse. This holiday shopping season, problems with economy have only made being careful about where we spend our money even more important. Don't want to be singing the post-holiday blues? Beware of five holiday "gift gotchas."

 

1. Temporary Mall Kiosks: These transient traders drift in with the winter weather, hawking everything from jewelry to jammies. The deals might be good. The problem for shoppers is that the kiosks often disappear immediately after the holidays, providing no option for refund or return. Think twice before purchasing high-value goods, such as electronics or non-costume jewelry, from an itinerant, seasonal vendor. When you do buy, inspect the item carefully, and test any moving parts or electronics before you cough up your hard-earned cash.

 

2. Gift Cards: Last year, Americans purchased more than 150 million gift cards; they are likely to be even more popular this holiday season. While gift cards are certainly convenient, there are some downsides. Many cards expire if not used. Others have monthly fees and limit the recipients' options compared to cash (although that's not always a bad thing). Gift-card fraud is also on the rise. Protect yourself by purchasing gift cards only from the store or Web site where your recipient will spend them. Carefully examine the card to make sure the PIN number hasn't been compromised, and ask the cashier to scan the card to make sure it is valid and has the correct balance. Before you give the card to your intended recipient, write down the card number and the customer-service phone number. If that seems like too much trouble, an old-fashioned paper gift certificate works just as well and is more difficult to pilfer.

 

3. Sale Items: What's not to love about a sale? The deals are great, but there are reasons to be cautious. Sale items are often not returnable. Even if they are, the store will often give you only the lowest price the item sold for during the holiday season, even if you paid more. Even worse, some sale items are not what they appear to be.

 

During the holidays, many chain stores bring in look-similar merchandise that is of lesser quality at a lesser price. Before you dive into those deeply discounted holiday sales, be sure you know what you're buying and what the return policies are. Always get a gift receipt, and inspect the items carefully to make sure you're not getting knockoff, damaged, or defective merchandise.

 

4. Online Electronics: In these tough economic times, everybody's looking for the best deal on big-ticket electronics. However, think twice before you click to buy that flat-screen TV from an online retailer. Saving a hundred bucks now might not be worth the extra time and aggravation if something goes wrong later. Most online retailers require you to ship items to the manufacturer's service center for repair, which can be a real headache. (Ever tried to pack and ship a 50-inch flat-screen? Not fun.) Just receiving a replacement can take weeks, or months. Even getting credit for a return can be an exercise in patience. For these reasons, I highly recommend shopping at a bricks-and-mortar electronics retailer rather than trying to find the ultimate Internet discount. You'll also thank me when installation time comes. Should you damage a product by installing it yourself, you might be liable for the damages.

 

5. Mail-In Rebates: Don't fall for this marketing gimmick. Rebates are often difficult or impossible to redeem. You can find them for anything from printers to popcorn poppers, but the Federal Trade Commission has thousands of reports on dozens of companies that have failed to reimburse customers who were trying to take advantage of such offers. At the heart of the problem, very often the rebate is processed through a third-party "fulfillment company" rather than by the company whose product you purchased. Best bet? If you're looking for a discount, get it at the register.

While I can't guarantee that avoiding these five "gift gotchas" will guarantee a trouble-free shopping season, I can assure you that you'll be much more likely to be diving for deals than waiting in customer service lines when the real sales hit…on December 26.