Gift cards must be the most profitable thing that many retailers sell, what with the breakage. Even without breakage, gift cards are a great deal for retailers (assuming they are sold at face value). They have guaranteed business, and an interest-free loan for the interval between issuing the card, and it being redeemed.
So from a consumer protection point of view, I think there should be regulations to lessen gift-card breakage. What seems simple enough would be to email the purchaser of the gift card, if it hasn't been used within 2 years, and offer them the option of a refund or re-issue.
I suppose that raises potential privacy issues for the recipient--especially if they lied and said they used it, because they were too embarassed to admit they lost it.
Maybe the best thing is just to eschew gift cards altogether.
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