Here is an interesting article on MSN money about rules of regifting.
My personal opinion is that you should never regift something that you wouldn’t have purchased in the first place for that person. I think regifting is ok – it’s like recycling. But, as with recycling, you have to separate your materials. I’ve received gifts that I like, but have no real use for, so I keep them handy to pass along. Smaller items such as soaps or lotions can be paired with other purchases, sort of a “value added” concept.
As the saying goes, it’s the thought that counts. Randomly passing along something you don’t like to someone else doesn’t show much thought. Giving up something you do like but you know someone else will like equally or better is much more in the spirit of the season.