Gift cards about to live a longer life
ALL gift cards sold in NSW must now have a minimum three year expiry date following reforms introduced on March 31.
Member for Coffs Harbour, Andrew Fraser, said it puts an end to the frustration of trying to make a purchase with a gift card and then finding it is out of date.
"Previously, the majority of gift cards offered only a 12-month expiry date but now consumers will have three years to cash in and that's a big win,” he said.
"Many would have experienced the disappointment of going to use a gift card only to find it had expired and that's money down the drain.
"It's far less likely to happen in future.”
The new legislation follows research last year by finder.com.au showing Australians were wasting around $70 million a year in unredeemed gift cards from the estimated $2 billion in annual sales.
That equated to about 2.6 million people in the previous two years.
In NSW, the average loss was $39 per person amounting to $14.3 million.
However, the NSW move is unlikely to be the end of the matter with consumer groups not only agitating for the scheme to be extended nationwide but also the introduction of unlimited expiry.
Apple and Bunnings already have this policy and The Good Guys and JB HI-FI intend to follow suit.