Last week, the Fair Trading (Gift Card Expiry) Amendment Bill (Bill) had its first reading and was referred to the Economic Development, Science, and Innovation Committee (Committee).
The Bill would prohibit the sale to a consumer of a gift card with an expiry date that is earlier than three years after the date of sale of the gift card. Gift cards that contravene this prohibition would be automatically deemed to have an expiry date of three years after the date of sale. This would only apply to gift cards sold after the commencement of the Bill.
The explanatory note of the Bill states that, as many gift cards have an expiry date of 12 months or less, one in five recipients lose out because they do not redeem the full value of their gift card in time. The Bill seeks to resolve this by introducing a prescribed minimum period of three years during which a recipient can redeem their gift card.
The Bill defines a gift card as, "a card or voucher (in hard copy or electronic form) that is redeemable for goods or services". However, a gift card would not include:
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a card supplied in substitution for goods returned to the supplier of the goods;
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a prepaid card or voucher redeemable for phone credit, internet access, or other similar services;
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a debit card, credit card, prepaid travel card, or any similar products supplied by a financial institution; or
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a card or voucher supplied as part of a customer loyalty programme.
The Committee has called for submissions on the Bill, with submissions due on 14 September 2023.
If you would like any advice regarding how the Bill might affect you or your organisation, or if you require assistance with responding to the Committee's request for submissions, please get in touch with one of our experts below.