Save
$70m consumer loss stoppered by new law
In good news as Christmas nears, national laws have come into effect today that mean any gift cards purchased Australia-wide must automatically come with a minimum three-year expiry period.
$70m consumer loss stoppered by new law
In good news as Christmas nears, national laws have come into effect today that mean any gift cards purchased Australia-wide must automatically come with a minimum three-year expiry period.
The amendment to Australia’s consumer law has occurred to ensure a “consistent approach to gift cards, no matter where in Australia they are purchased”, according to Western Australia’s commissioner for consumer protection David Hillyard.
“Gift cards are big money in Australia, both for their convenience and flexibility, but unfortunately an estimated $70 million is lost each year due to expiry dates,” Mr Hillyard said.
He explained that federal, state and territory consumer agencies worked together to introduce the new rules around gift card expiry dates and post-purchase fees and charges “to help prevent such losses and to make gift cards fairer for consumers”.
“With the exception of a few limited-use gift cards and vouchers, all gift cards bought from 1 November 2019 will automatically come with a minimum three-year expiry period, with the expiry date to be clearly marked on the card,” Mr Hillyard said.
Even where traders do state an earlier expiry date, it will be invalid and consumers will be entitled to the mandatory three-year period.
“It will also be illegal for traders to charge post-purchase fees or administration charges that will reduce the value of the gift card, such as activation, account keeping and balance enquiry fees,” the commissioner continued.
Traders will be able to charge fees they would normally charge as part of a transaction, such as overseas transaction fees, booking fees or fees charged to replace a lost, stolen or damaged card.
Traders will also not be prevented from charging upfront fees for the purchase of the gift card, with Mr Hillyard acknowledging that “whether consumers choose to accept an upfront fee and proceed with the purchase will be up to them”.
About the author
About the author
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
