TDs plan a Bill to end ‘rip-off’ charges on gift vouchers

CONSUMERS will no longer be ripped off by ‘sneaky charges’ associated with gift vouchers under proposals brought forward by the Social Democrats yesterday.

Co-leaders Catherine Murphy and Róisín Shortall brought forward legislation to abolish the ‘use it or lose it’ policy adopted by certain retail outlets.

Under the plans, the expiry period on vouchers would be extended to five years, giving consumers ample time to use them without being left out of pocket.

Ms Murphy said: ‘The whole area of gift vouchers and gift cards is largely unregulated in Ireland, with everything stacked against the consumer.

‘Retailers are free to put any expiry period on gift vouchers with many opting for just 12 months. This amounts to an unfair “use it or lose it” policy and is just not acceptable.

‘These are not gifts or money-off from the retailer; they are actually money, paid for by customers.

‘Our Bill would mean all gift vouchers have an expiry period of at least five years.’

She said certain retailers place limits of six to 12 months on their gift cards before they become valueless or in some cases they reduce the value of the cards each month they are not used.

Michael Kilcoyne of the Consumers’ Association of Ireland said he fully supported the move, adding he been calling for regulation of the sector for over a decade.

He said: ‘There was no regulation in the past. You might get a voucher one place that would last for a month another where it was 12 months.

‘Research shows that 40% of vouchers are never used. I have been calling for this for ten years.

‘There are some businesses that give vouchers that have no time limits, others have three months. If you go back in three months and one day, they won’t hear about it.’

On RTÉ One’s Liveline yesterday, caller Ted Neville said he had won a €60 gift card just over two years ago. But when he tried to use it yesterday, the balance on it had been reduced to just €17.

He told the show: ‘[The €43] has gone, apparently, on management charges. I don’t know what they’re managing. I haven’t done anything with the card just sitting waiting to be used.’

Mr Neville said he complained and was given a full refund.