There is a chance expiry dates on gift cards could become a thing of the past.
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The NSW government’s Fair Trading department is conducting a survey of consumers’ feelings on gift cards which “will help inform whether regulatory change is warranted”.
Gift cards operate like a contract. After the expiry date, it is really at the whim of the trader whether they choose to honour the contract.
- Victor Dominello
That could include restrictions on the use of expiry dates on gift cards or even banning them outright, as is the case in some places in the United States.
Any such legislation would be welcomed by anyone who has stumbled across an old gift card and tried to use it.
Minister for Innovation and Better Regulation Victor Dominello said that Australians spent around $2.5 billion a year on gift cards but some are never used due to expiry dates.
“Consumers often fail to redeem their gift cards and those who try to use them after the expiry date, do so with mixed success,” Mr Dominello said.
“Gift cards operate like a contract. After the expiry date, it is really at the whim of the trader whether they choose to honour the contract.”
There are a number of reasons why a business would place an expiry date on a gift card, the main one being it is a way for them to limit ongoing financial liabilities.
With Fair Trading Week on this week, Mr Dominello said people should try and use their expired gift cards.
“We’re calling on NSW consumers to make a special effort this week to dig out their expired gift cards and vouchers and try their luck redeeming them,” he said.
“Fair Trading’s experience is that many retailers are prepared to extend the expiry date of cards when requested and we are encouraging consumers to ask the question and report their experience.”
So far in 2016 NSW Fair Trading has received 271 complaints relating to gift cards.
Some of these relate to the customer not being aware of the card’s terms and conditions.
For instance, some retailers will include a condition that no change can be given when redeeming a gift card.
The gift card survey can be found on the Fair Trading department website – www.fairtrading.nsw.gov.au