Any lawyers out there? Is this legal?

-- I posted this on sister site Consumerist, but I thought it would be worth reading for anyone interseted in a funny story about Sharper Image...

Here is a funny Sharper Image story, about one in Paramus NJ.

This was a new store opening in a mall that already had a Sharper Image (which was much smaller). The manager used to work as an assistant manager in (I believe) the Times Square store. So he was supposed to be some real professinal, all excited to show what he could do with his own store.

Well shortly after opening, one slow evening we had a group of guys spread out around the store speaking with every sales person. We of course didn't realize they were all together.

After they left the manager realized that all the digital camcorders, and other high end items, in our clear plastic display cabinets had been stolen. Apparently the key used to open those display cabinets was UNIVERSAL for all stores!

Normally this wouldn't matter due to the black spiral security cords attached to every item...except the manager forgot to put them on. So in a panic he took a knife and cut the cables in half (which took quite awhile) and stuck the cut bases into the display case...and of course told us all to go along with his story of people coming in and cutting everything while we didn't notice. >_<

I left within a few months after that, I don't think he was there much longer either.

What a crock! It's not bad enough they're knee deep in their or crap, that their customer have to shell out MORE $$$$... LAME!

That sounds about right - everything there costs twice what it's worth, so you can use the gift card for the markup and you just pay for what the actual value of the item is.

Hrm, only thing I saw there that I thought was interesting was the $150 ipod dock Scandyna set. Which isn't even on their website anymore.

@tehronin: They're in bankruptcy, they don't even have to allow you to redeem your cards because you're an unsecured creditor. They're not required to ever take cards ever again if they don't want to.

Bankruptcy law for Chapter 7 says they are not allowed to accept gift cards. Chapter 11 states its up to the courts on an individual basis.

I don't get all the bias against Sharper Image. Yes there is a premium price for shopping there but you get customer service if those items break. Instead of mailing them to China and all that BS.

After Consumer Reports attacked the hell out of them its been tough for them to get back on there feet.

That's BS. You've already given the company your money, they should let you use it for whatever you want. You already paid for it!

Saaaaaaaaaaahhhhweet!

Now I'll be able to afford that turbo nose hair trimmer and electronic fishing game I've been pining for.......

Buy something with the gift card and your credit card, then return it for a full refund on your credit card. That would work, right?

@HummerMan3: Yes, unless all sales are final. If all sales are final, and you attempt to return it, your card may still protect you. You might end up with a product and your cash. The SharperImage gets a charge back, and justice is served.

Hey R2, sell my Sharper Image stock!

@DeadWriter: Or unless they refund your card the amount charged on it, and hand you another gift card back...

@Out2gtcha: I think you need to clarify that this particular pining is for a device that is both an electronic fishing game and turbo nose hair trimmer in one.

Not a lawyer - I worked retail long enough - but I'm pretty sure it ain't legal to sell a gift card in exchange for cash at a cash value and then tell the customer that it's now only worth half price when you goto buy merchandise with it_

Example - I go in and buy a gift card for $30_

They have their bankruptcy thingy_

They stop accepting the gift cards_

Brookstone picks up the slack_

Then Sharper Images says it will start taking the gift card that I bought again_

Except that now my $30 is only worth $15_

I spent $30 at the store and I expect $30 worth of goods or service_ Period_

--
Sorry Sharper Image - but if you don't want lawsuits on top of your bankruptcy then you better accept the cash value of the gift cards_ If nothing else cash them out right there at the registers_

You sold an item or service and now you are only giving that customer half of what they paid for_

@uberfu: Uhm, they're not saying it's worth half the price. They're saying they will accept them if the item being purchased is at least 2x the gift card's value.

IE: $30 gift card has a $60 minimum purchase.

It isn't Sharper Image, per se that just created this rule as a Corparate Policy or anything. It's Bankrupsy (sp?) law... As seanism mentioned already, earlier.

I am consulting for a firm right now that is in Chapter 11. They have to get approval to wipe their ass from the receivers (the court appointed trustees). It is not a matter of good business practice, or if it practical, or if it costs or saves money, it is what the receivers deem necessary to protect the assets for the various creditors. It sounds to me like Sharper Image really does want to reorganize and return from the dead, and this is the best they could wrangle out of the receivership to salvage what little good will they have left with their customers. My guess is that these gift certificate holders are at the tail end of a long line of creditors further up the food chain, and would otherwise be screwed.

Brookstone is taking SI gift and are also giving you a 10% discount!