All shops in New Zealand must now give people at least three years to use gift cards bought at their stores.
The rule applies to both physical gift cards and digital ones. It aims to stop retailers from setting short expiry dates, which were often only 12 months in the past. If a business does not follow the law, it could be fined up to $1000 for each breach. In serious cases, it could also be taken to court.
The new law is called the Fair Trading (Gift Card Expiry) Amendment Act 2024. Consumer NZ, a group that speaks up for shoppers, has supported this change for a long time. Its research found that about $10 million is left on unused gift cards each year. The group also said around one in five gift cards had gone unspent. This can happen when people put a card away and forget to use it before it runs out.
Consumer NZ said the expiry date must be shown clearly on the card. However, the three-year minimum still applies even if the card says something different. The Commerce Commission will check whether retailers are following the law. Shoppers can report businesses that do not comply through the Commission’s website. Some cards are not included, such as transport cards, loyalty cards, festival passes and cards sold for charity, but prepaid Prezzy cards are covered by the new rule.
