Do you think three years is too short or long for gift card expiry dates?
Gift Cards are one of my favourite gifts to give and receive – not only are they convenient to buy, but there is much less chance that the receiver will end up with a gift that they don’t love. They are also a great way for retailers to promote brand loyalty.
However, new laws regarding gift cards expiry are soon to be implemented in NSW. The NSW Parliament has recently passed legislation requiring that gift cards have an expiry date of at least 3 years after the date of sale of the gift card. Additionally, any fee after the sale of a gift card that reduces its value is prohibited.
Retailers that trade interstate, including those that sell gift cards online where it could be redeemed in NSW need to comply with the new laws.
A penalty notice of $550 may apply for contravention of the laws and for serious breaches there is a maximum penalty of $5,500 (as of January 2018).
The laws will be coming into force on 31 March 2018. That is a little over a week away!
In my experience, the average for most retailers is a 12 month expiry date (I have seen some at 6 months) and some do offer up to 24 months. A three-year minimum expiry date is certainly a big jump from existing practices – what are your thoughts on the changes?
With the new laws coming in, it is essential that you review your gift card terms and conditions. We are currently offering fixed-fee drafting of compliant gift card terms and conditions. Give me a call on 1300 033 934 or email me at for a no obligation chat.