News Category - Commercial Law Advice By Lauren O'Brien 12 November 2018

In the lead up to Christmas, you might be wondering what to get your loved ones, or relatives who are tricky to buy for. If you’re thinking about getting them a gift card, things are looking good!

The Australian Government has recently passed legislation to protect Australian gift card consumers.

Gift cards supplied on or after 1 November 2019 will need to be valid for at least three years and must prominently display the expiry date or the words “no expiry date”.  Post purchase fees will be prohibited, for example, activation fees and balance enquiry fees.  

Businesses will need to ensure compliance with this new legislation as penalties are steep for the issue of gift cards which do not comply: $30,000 for a body corporate or $6,000 for an individual.

As always, the devil will be in the detail and we are yet to see the accompanying Regulations.  There will be some exemptions, for example reloadable cards and second hand gift cards which are on-sold.  We anticipate however, that the Regulations will fall on the consumer protection side and the majority of “gift cards” which we encounter in our “gifting” will be caught by the new legislation.

As a proud regional business, we encourage everyone to buy locally this Christmas!

If you have any queries about the implication of this legislation for your business, Aaron Strickland of our firm will be able to assist; you can contact us on 1800 650 656.

Aaron Strickland and Lauren O'Brien | Kenny Spring Solicitors Commercial Team