From 1 November 2019, the Australian Consumer Law (ACL) has been amended to provide protections for gift card consumers across Australia. 

The national changes apply to gift cards supplied to consumers from this date. Cards and vouchers sold before this date continue to have the same expiry period and applicable fees as at the time of purchase.

The law applies to all gift cards or vouchers sold on or after 1 November 2019, unless specifically excluded. This includes gift cards for online stores that trade in Australia. A breach of the laws could attract a $30,000 fine in the case of a body corporate, or $6,000 for individuals.

Gift card terms and conditions must comply with the reforms or they will be void and the new requirements will be applied regardless of what is written on the gift card.

With some exclusions, the fundamentals of the changes are: a minimum required three year expiry period for gift cards, required display of expiry dates on gift cards, and the banning of most post purchase fees on gift cards.

The three year requirement does not apply to gift cards that are:

• able to be reloaded or topped up
• for a good or service available for a limited time where the card or voucher expires at the end of that period (e.g. entry to a concert or museum exhibition)
• supplied to a purchaser of goods or services as part of a temporary marketing promotion (e.g. a wine voucher valid for one month that is mailed to a consumer as a free bonus with a purchased item and was not part of the purchase offer)
• donated free of charge for promotional purposes (e.g. a local shopping centre has a one-day marketing promotion where each visitor to the centre on that day is handed a $20 gift card that is valid for use at any store in the centre for that day only)
• sold for a particular good or service at a genuine discount (e.g. $50 card for salon service valued at $100)
• supplied as part of an employee rewards program
• given as a bonus in connection with a purchase of a good or service for use in the same business (customer loyalty programs)
• second-hand gift cards
• part of a temporary marketing promotion (e.g. customers buy a certain product from Business A, which provides a $50 voucher to use at Business B).

What needs to be changed?

Following the changes, businesses should update gift card terms and conditions on websites and other promotional material, including on physical gift cards, and update internal systems, training and compliance manuals. Signage should be placed on gift card displays and at the point of sale. Additionally, any receipt issued when a gift card is purchased should make note of the changes.

NSW and SA have local gift card laws in place, so if you have any questions about gift cards, raise them with your state or territory consumer protection agency in the first instance.

Further information on the changes can be found in the Australian Consumer Law Explanatory Memorandum.

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