It is the season for gift cards - make sure you know the new rules!
On 1 November 2019, new laws about gift cards came into effect. Previously, there was no nationally uniform law regarding minimum expiry dates, and it has been estimated that $70 million is lost annually by consumers due to gift cards expiring before consumers had a chance to redeem them.
On the flip side, gift card expiry dates are important for businesses so that they are not hindered by carrying liabilities year on year.
So, the new rules aim to balance the needs of business with the interests of consumers.
There are three main changes in the laws about gift cards that now apply to the whole of Australia:
Firstly, gift cards must have a minimum three-year expiry period;
Information about the expiry of the gift card is required to be displayed on the card itself in an obvious way; and
Terms cannot include certain post-supply fees to be charged.
There are, of course, a limited number of exceptions to these rules.
If you are a business concerned about how these changes will affect your business, have a look here or give us a call.