16 March 2026
Retail NZ is cautioning new gift card expiry rules could cause confusion as both retailers and shoppers get used to the changes, and further amendments to the law should be considered.
New legislation in force from today requires any gift card that has been sold to have a minimum expiry date of three years. However, guidance released by the Commerce Commission on 27 February outlining what constitutes a “gift card” and what is considered “sold”, may come as a surprise to some.
“We have been fielding questions for many months from members about what cards might be captured under these new laws, from ‘buy nine get one free’ coffee cards to vouchers given out as part of loyalty programmes,” Retail NZ chief executive, Carolyn Young, says.
“While we are grateful for the guidance the Commerce Commission published late last month in response to our many queries, some of the interpretations are not what our members were expecting,” Ms Young says.
All gift cards and vouchers given out for free are exempt from having a minimum expiry, as are prepaid top-up cards for telecommunication services, public transport, electricity, gas, or water services.
“What might surprise consumers is that all other prepaid top-up cards, such as for using the machines in laundromats or gaming arcades, are now included in these rules,” Ms Young says.
While the Commission suggests having no expiry on those, those that do are now required to print that date prominently on the back and allow at least three years to spend any loaded money.
“Small businesses with these cards often feel they must apply expiration dates to keep their liability in check. This change now causes compliance headaches, as well as putting more debt pressure on SMEs during tough economic times,” Ms Young says.
“What has also caught some of our members by surprise is the inclusion of bonus gift cards given out with the sale of a specific item. While retailers maintain they are given for free alongside a purchase, the Commission has deemed that they are part of the sale of the product and must now comply with the expiration rules.
“Retail NZ believes neither of these scenarios were intended to be included in this Bill, which is about ensuring consumers have a fair amount of time to spend gift cards bought for them by friends and whānau.” she says.
Retail NZ is calling for an amendment to exclude these examples from the new legislation and will continue to discuss retailers’ concerns with the Commerce Commission and the Government.
For further information or to set up an interview please contact Carolyn Young on 021 449 452
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