Allan - I think the earlier poster is right...if you're example is correct then Best Buy is rather bizarre.
So using the exact same example but shifted a bit....if the competitor offered NO gift card, their price of $50 would be less than yours ($60), and you'd price match at $50.
But if they SWEETEN the deal, and add a $30 gift card, now suddenly (by the insane ADDING of the gift card) Best Buy's price goes back up to $60, because you wouldn't match it.
Competitor offers Product at $50 when you charge $60 -- Best Buy shifts to $50.
Competitor throws in a gift card with a VALUE (NOT price) of $30 for FREE -- Best Buy reacts by INcreasing their price back to $60.
Can you please re-confirm that this is how it works, because it seems a bit silly.