New gift card laws will help shoppers

CHANGES to gift card laws have removed some of the traps that previously caught out consumers, but shoppers must still do their homework.

On November 1 it became mandatory for most new gift cards to have a minimum threeyear expiry date – a move described by consumer group Choice as a win for shoppers.

The rule changes also require expiry dates to be displayed prominently on cards and no fees charged after purchasing, except for some overseas transaction and booking fees.

Choice head of policy and government relations Julia Steward said shoppers should read the fine print when buying a gift card.

“So many people leave gift cards in a drawer and forget about them,” she said.

“They’re not unlimited – they still need to be used within that three-year period.”

Some retailers – including Bunnings, Woolworths and JB Hi-Fi – have unlimited expiry dates on gift cards.

Ms Steward said gift cards were great for delivering recipients “choice and flexibility to buy what they want”.

But beware of upfront costs, as some gift cards charge purchasing fees up to $6.

Queensland Consumers Association spokesman Ian Jarratt said people shouldn’t keep gift cards for too long.

“The business may go out of business,” he said. Mr Jarratt said, when cards weren’t fully spent, many businesses would not refund the leftover balance, even if it was just $5.

“That’s a sales trick to make you spend more money in the store,” he said.