Selling gift cards
From 10 December 2018, gift cards sold in South Australia must have a minimum three year expiry date. The expiry date on cards sold before that date will not change.
A business must not:
- sell a gift card to a consumer in SA with an expiry date less than three years
- charge an administrative fee that reduces the redeemable value of the gift card after its sale.
Businesses will have six months to sell existing stock and implement system and process changes - eg updating IT platforms and compliance manuals, and training staff.
Selling old card stock
During the six month transition period, businesses can continue to sell existing stock of gift cards that are labelled with shorter expiry dates, but they must honour the cards for three years. They must also inform consumers about the new laws by:
- updating their gift card terms and conditions on the business website or other promotional material
- placing signage on stands where gift cards are located or at point of sale
- handing a flyer to customers at point of sale to inform them of the changes
- making note of the changes on the receipt issued when a gift card is purchased.
The changes don't apply to gift cards delivered to an address outside SA or where the address of the purchaser is outside SA.
The new requirements will not apply to cards or vouchers that are:
- redeemable only for phone credit, internet access or any other utility - eg iTunes card
- supplied in substitution for goods returned to the supplier - eg a card or voucher given to a consumer when they return faulty goods
- supplied as part of a customer loyalty or employee rewards program
- supplied as part of a temporary marketing promotion to reward anyone who purchases particular goods or services
- redeemable only for a particular product or service that is available for a limited period such as entry to an art exhibition or a concert.
The new requirements will also not apply to:
- ATM cards, charge cards, credit cards or debit cards
- reloadable prepaid cards such as mobile recharge cards.