The One Where They All Turn Thirty - S7-E14
Plot hole: There's no way Phoebe has lived to 31 without knowing her birth date. She's had "real" jobs (like the massage parlor) and those require social security numbers and accurate birth dates. She didn't go to high school, but she mentions classmates, so she must have gone to elementary/middle school, and those required birth dates even in the '70s and '80s. She's also "lived in Prague," which she couldn't have visited without a passport - which requires a birth certificate.
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.