At the end of March the NSW Government announced changes to the laws for buying and using gift cards and vouchers by extending the use by period to three years.
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The announcement has been welcomed by member for Cootamundra Steph Cooke.
“All gift cards sold in NSW must have a minimum three-year expiry date,” Ms Cooke said. “The move will put up to $60 million a year back in the hands of New South Wales shoppers.”
According to Ms Cooke previously the majority of gift cards and vouchers offered only a 12-month expiry date, but now local shoppers will have three years to cash them in. “That’s a big win,” Ms Cooke said.
The new law applies to the big name gift cards as well as small business gift cards and vouchers with only a few exceptions to the new law.
“This is a big win for consumers in the Cootamundra electorate, many of whom would have experienced the disappointment of going to use a gift card only to find it had expired,” Ms Cooke said.
The new reform came into effect from March 31, however there is a grace period to allow the changes to fully come into effect on October 1, 2018.
The exceptions to the new gift card laws are:
- A gift card or voucher that is given by a business for free to a consumer
- A gift card or voucher exchanged for goods returned to the supplier of the goods
- Prepaid cards for phone credit or internet access
- ATM cards, debit cards, credit cards or charge cards
- Gift cards supplied as part of a customer loyalty or employee rewards program
- A gift card or voucher supplied as part of a temporary marketing promotion as a bonus to the purchase of a good or service
- A gift card or voucher sold for a particular good or service that is below the market value of the good or service (a genuine discount)
- A gift card or voucher sold or donated for use in a fundraising appeal, including to a charity or not for profit organisation
- A reloadable card that uses EFTPOS, Visa or Mastercard or a similar electronic payment system
- A gift card or voucher for a good or service available for a limited time where the card or voucher expires at the end of that period (for example, entry to a concert or museum exhibition, or a pair of shoes that is only available for a limited time)
Store owners or gift card providers can be fined a penalty infringement notice of $550 and result in a maximum penalty of $5,500 if they are found to breach the new laws. For more information about the reforms, visit http://www.fairtrading.nsw.gov.au for changes to gift card expiry dates and fees
Rebecca Hewson
A local with a love of local news reporting for the people across the Hilltops and Weddin areas.
A local with a love of local news reporting for the people across the Hilltops and Weddin areas.
