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ARTICLE · 18 SEPTEMBER 2019

New laws to affect businesses that issue gift cards

Corrs Chambers Westgarth
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Discussion about new law that all gift cards must have a minimum three year expiry period - up to $30,000 for non-compliance.

AustraliaConsumer Protection
James Cameron
James Cameron
Chloe Mo
Chloe Mo
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From 1 November 2019, Australian businesses must ensure that all gift cards they sell or supply to consumers have a minimum three year expiry period, with penalties of up to $30,000 for non-compliance.

The new laws were prompted by ongoing consumer frustration about inconsistent expiry dates on gift cards. They are also intended to bring greater certainty for issuers of gift cards, who might otherwise have to comply with different state and territory laws.

Who will be affected by the changes?

The obligations will apply to 'any person who, in trade or commerce, supplies a gift card to a consumer'. This includes businesses that donate gift cards to charities or consumers as 'prizes', as those businesses are generally considered to be doing so for promotional purposes.

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