How does this apply to persons in trade that sell consumer gift cards?

Minimum gift card expiry rules only apply to person(s) in trade who sell a gift card or voucher to a consumer.

A gift card will not generally be considered “sold” if it has been given away or issued automatically on its own, without being bundled with other goods or forming part of a sale. 

Do the gift card expiry requirements apply to bonus gift cards?

In the Commission’s view, the expiry requirements do apply to “bonus” gift cards that are offered alongside a purchase for promotional purposes, as the gift card forms part of the sale of goods.

For example, if a business advertises a promotion where a $100 gift card will be provided to a customer who purchases a particular item (such as, a laptop), that gift card will be subject to the expiry requirements in the Fair Trading Act.

The Commission does not consider gift cards given out for free to incentivise a consumer to visit a store or make a purchase, without being bundled with a purchase, to be subject to the expiry requirements of the Fair Trading Act as they are not sold.

For example, $20 gift card or voucher given out on the street.

Do the gift card expiry requirements apply to prepaid top-up cards?

Prepaid cards or vouchers redeemable only for telecommunication services, public transport, or electricity, gas, or water services are excluded under section 36WA(b) of the Fair Trading Act.

In the Commission’s view, the expiry requirements do apply to other prepaid cards, such as laundromat and arcade cards, which allow for recurring top-ups. This is because the cards meet the definition of “gift card” (they are redeemable for goods or services) and are “sold,” once the consumer loads the card with money.

The Commission acknowledges that for cards with a rolling expiry date (that resets each time the consumer tops up the card), it may be difficult to meet the strict disclosure requirements of the Act. The Commission encourages businesses to be honest and upfront with consumers about the date the value added to the prepaid top-up card will expire.

Choosing the option to set “no expiry date” under section 36WC of the Fair Trading Act is likely the best practice option for cards with a rolling expiry date.

Do the gift card expiry requirements apply to loyalty points?

In the Commission’s view, the expiry requirements do not apply to the loyalty points a consumer collects as part of a loyalty rewards scheme.

Do the gift card expiry requirements apply to gift cards purchased using loyalty points?

In the Commission’s view, gift cards that a customer chooses to purchase using their loyalty points are subject to the expiry requirements.

For example, if a customer has 300 loyalty points and chooses to spend 100 of those points to purchase a $10 gift card, that gift card will be subject to the expiry requirements.

Do the gift card expiry requirements apply to automatically generated loyalty rewards vouchers?

Some businesses automatically provide a consumer with a voucher once they reach a minimum spend threshold or a required number of loyalty points (e.g., collect 300 points and automatically get a $30 voucher). In the Commission’s view, such vouchers are not subject to the expiry requirements as they are automatically generated (rather than forming part of a sale).