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Easter Gifting Economics: Why Gift Cards Are Quietly Winning

Gift cards are emerging as the dark horse of Easter gifting, offering flexibility for recipients and a stress-free choice for givers.

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Happy Thursday, !

This week we explore the gift card loophole playbook—how certain prepaid cards dodge regulations under §1005.20(b) and what businesses need to know to stay compliant.

Gift cards are emerging as the dark horse of Easter gifting, offering flexibility for recipients and a stress-free choice for givers.

Advanced economies may be hitting a wellness ceiling as emerging markets, led by India, drive the next wave of growth in the $1.8 trillion wellness industry.

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📈 Seasonal Insights

Easter Gifting: Are Gift Cards the Dark Horse?

Easter gifting trends this year have a clear favorite: plastic eggs (39%). But here’s the plot twist—gift cards (20%) are quietly gaining ground, beating out books (10%) and "other" gifts (3%).

Why? Flexibility. While stuffed animals and decorations might bring smiles, gift cards let recipients choose—whether it’s an indulgent treat or a practical purchase. For the giver, it’s a stress-free way to avoid the wrong color bunny or too-sweet chocolates.

Insight: With 20% of consumers planning to purchase gift cards this Easter, retailers have a prime opportunity to highlight them as the ultimate crowd-pleaser. Bonus points if they’re branded with Easter motifs or paired with festive packaging.

💡 Case Studies

Case Study: Sephora’s Seasonal Re-engagement Win"

Challenge: How to re-engage lapsed customers during the busiest shopping season of the year?

Sephora’s answer: a $15 gift card incentive for Beauty Insider members spending $50 or more, valid over an 11-day stretch in December.

The results? This approach combined exclusivity, urgency, and customer appreciation—all in one festive package. While the offer incentivized spending, it also strengthened the connection with their most valuable shoppers.

Takeaway: Targeted gift card campaigns work wonders for loyalty re-engagement, especially when paired with seasonal momentum.

🏛️ Legislation Corner

The Gift Card Loophole Playbook

Regulators love rules—but they also love exceptions. §1005.20(b) outlines key carve-outs where certain prepaid cards don’t count as "gift cards" under the law. That means they skip most regulations, including expiration and fee disclosures.

Here’s how some cards make the cut:
✔️ Loyalty & promotional cards – Those “thanks for shopping” reward cards? They’re not bound by the usual gift card rules.
✔️ Corporate incentives – Employee bonus cards only issued within a company qualify for an exemption.
✔️ Reloadable prepaid cards – If a reloadable card isn’t marketed as a "gift," it’s free from regulation—even if it’s used like one.
✔️ Prepaid phone cards – Whether for long-distance calls or VoIP, phone-only cards don’t count as gift cards either.

However, there’s a catch: If a card is even occasionally marketed as a gift (like in a holiday promo), it can lose its exempt status. For businesses, that means careful compliance planning—because sometimes, all it takes is a single ribbon on the packaging to trigger regulation.

The insight for employers: Corporate incentive cards, exempt under §1005.20(b), let companies reward employees without standard gift card restrictions. Whether for performance bonuses or safety rewards, structuring these as loyalty or promotional cards ensures compliance while keeping teams motivated.

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📰 Interesting Articles

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