Gift Card Issues Paper Released

The Commonwealth Consumer Affairs Advisory Council has released an issues paper examining the need to regulate the issue and use of gift cards. The discussion paper which articulates a consumer view on the issues, suggests that a number of matters associated with gift card terms and conditions will come under consideration including:

Expiry dates - One of the main issues facing some consumers is when gift cards expire before the gift card holder has attempted to have it redeemed and where expiry dates vary greatly in duration causing confusion for some consumers;

Restrictions on low value use - Some gift cards apply terms and conditions where gift cards cannot be used to purchase items below a certain value;

Terms and conditions in the event of insolvency - Recent concerns with gift cards have been around terms and conditions which cease to apply following the insolvency of the gift card issuer as well as any new restrictions that are applied (for example, where administrators have required gift card holders to spend an additional dollar for every dollar redeemed);

Fees and charges - There is the potential for periodic fees and charges that apply to the outstanding balance of a gift card, to erode the value of the card over time, eventually making the card worthless to the consumer;

Limitations on use with respect to retailers that accept the gift card - Some affiliated merchant cards may appear as though they can be redeemed at a wider range of retailers than is possible, for example, some shopping centre gift cards cannot be used at all retailers within that shopping centre; and

Receiving change - Some cards do not offer the customer the balance difference in cash if the card is used and the remaining funds are under a certain amount.

It is understood that the terms of gift card use vary from retailer to retailer and the implications of the review and/or any regulation of gift card use will also be different between retailers.

Click here to view the Gift Card Discussion Paper

Submissions in response to the discussion paper are due on March 2, 2012. Members who wish to express views should contact the Marine Queensland CEO Don Jones.