Last year, NSW legislation came into effect requiring gift cards to have a minimum expiry period of 3 years. In a similar vein, Federal legislation passed on 25 October 2018, amending the Competition and Consumer Act 2010 (Cth) relating to gift cards.
As of 1 November 2019, all Australian gift cards will require a minimum period of 3 years from the date of supply to redeem. This encompasses gift cards both physical and electronic, and those redeemable for services and/or goods.
In addition to the 3-year minimum period, changes include requirements to prominently display information pertaining to the expiration of the gift card and prohibits post-supply fees in relation to gift cards. The amendments also create a positive obligation on suppliers of gift cards to ensure the terms and conditions are not void as a result of the above.
To avoid penalties, it is imperative that businesses offering gift cards, ensure that these requirements are meet prior to 1 November 2019. Each offence can give rise to penalties of $30,000 for a company, or $6,000 for an individual. For example, if a retailer does not prominently display the expiry date of a gift card and limits the expiry date to only 1 year, then that retailer could be hit with a $60,000 penalty!
If you would like us to review or draft your gift card terms and conditions, , don’t hesitate to contact me at email@example.com or give me a call on 1300 033 934 for a no-obligation quote. We also offer fixed-fee gift card print sign-off to ensure that your gift cards contain all the details required to comply with the new legislation.
Source: Australian Government