The Commonwealth Consumer Affairs Advisory Council (CCAAC) has invited public comment on a review of Gift Cards in the Australian market.
The issues paper seeks evidence and views about whether consumer detriment is caused by the purchase and use of Gift cards by Australian shoppers.
In releasing the paper, Parliamentary Secretary to the Treasurer, David Bradbury, said the gift card market is estimated to be worth around $1.5 billion.
“Gift cards are often subject to terms and conditions which consumers need to ensure they read and understand,” Mr Bradbury said.
“As gift cards have grown in popularity, fair trading regulators have received complaints from consumers about a range of issues related to the cards, including the application of expiry dates, restrictions on using gift cards for low-value purchases, and the rights of gift card holders in the event of a company becoming insolvent.
“This issues paper invites members of the community to come forward with their experiences of purchasing and using gift cards to help inform CCAAC’s inquiry.”
University of Southern Queensland law lecturer Nicky Jones argues it is unjust for retailers to accept consideration for gift vouchers and then refuse to deliver promised goods or services when the vouchers expire.
In her paper “Gift Vouchers and Expiry Dates: When the Gift Stops Giving” (Queensland University of Technology Law & Justice Journal 213), Dr Jones recommends amendments to Australian consumer laws to protect shoppers from losing the benefit of unused and expired gift vouchers.
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