The Federal Government has released, and is seeking submissions and comments on, a Regulatory Impact Statement (RIS) which examines options for national regulation of gift card expiry dates.
Information about the RIS and the consultation process is available here:
The consultation period closes on 30 May 2018.
The RIS focuses on expiry periods and exemptions and examines three options:
Option 1 – the status quo
Option 2 – prohibition on gift card expiry dates
Option 3 – three year minimum expiry dates
Option 3 is the preferred option.
The Federal Government’s interest in this topic is largely due to the recent NSW government law which for certain gift cards requires a minimum 3 year expiry period and prohibits post purchase fees.
However, as noted in the RIS, some gift cards are subject now to national regulation as a result of ASIC legislation which requires disclosure of expiry date, and some cards are covered by a voluntary ePayments Code which specifies a minimum expiry period of one year.
The Queensland Consumers Association (QCA) will make a written submission on the RIS and, in addition to considering expiry periods and exemptions, it will also cover definitions, fees/charges, and treatment of small amounts of unused value.
QCA is interested in exchanging ideas and information on this issue with other members of CFA. The contact person is Ian Jarratt at email@example.com