Of the gift cards sold by these businesses a certain percentage are not redeemed before they expire. Changed gazette deadline pre-Easter. In addition, no post-purchase fees can apply to redeem the voucher (including activation fees, account keeping fees, balance enquiry fees, telephone enquiry fees and fees applied when a card is inactive or not being used). Over a period of 5 years, NSW Fair Trading received over 1300 complaints, sparking calls for gift card reform. The expiry date must be displayed on the gift card. New changes to the NSW gift card laws are now in effec, Cyber Security, Data Protection and Privacy, A gift card or voucher that is given by a business for free to a consumer, A gift card or voucher exchanged for goods returned to the supplier of the goods, Gift cards supplied as part of a customer loyalty or employee rewards program, A gift card or voucher supplied as part of a temporary marketing promotion as a bonus to the purchase of a good or service, A gift card or voucher sold for a particular good or service that is below the market value of the good or service (a genuine discount), A gift card or voucher sold or donated for use in a fundraising appeal, including to a charity or not for profit organisation, A gift card or voucher for a good or service available for a limited time where the card or voucher expires at the end of that period (for example, entry to a concert or museum exhibition, or a pair of shoes that is only available for a limited time), Prepaid cards for phone credit or internet access, ATM cards, debit cards, credit cards or charge cards, A reloadable card that uses EFTPOS, Visa or Mastercard or a similar electronic payment system. NSW gift card reforms . ADMA raised significant concerns about the practicality of compliance with the new laws and advocated for the need to have sensible transitionary arrangements in order to ensure the best customer experience and the ability for businesses to comply with the new laws. These amendments only apply to gift cards sold to a consumer who is in NSW at the time of sale or to a consumer who provides a NSW address in connection with the sale. Further, many businesses – particularly smaller ones – may not have the systems in place to comply with the new laws. “All gift cards purchased before March 31st 2018 run by a 12-month expiry date as per the terms and conditions of the original purchase." a prohibition on, and fines for, imposing administrative charges or fees for redeeming gift cards that reduces the value of the gift card or voucher; other debit or credit ‘gift cards’, such as the visa prepaid gift card, are exempt from the laws; gift cards supplied in connection with loyalty programs are exempt from the laws. To understand how we protect your privacy, please refer to our Privacy Policy. This follows the New South Wales Government having introduced their own gift card legislation for cards sold in … Lack of clarityA number of elements of the new law need more clarity, including transitional arrangement - particularly in relation to existing gift cards in the market; application in the B2B sector; what is meant by the term ‘loyalty program’; and whether these laws apply to employee programs. The commencement of the laws were delayed after the NSW parliament voted down a proposed 1 December 2017 commencement date following concerns raised about the implementation of the laws and the impact on business over the busy Christmas period. Gift cards must have a minimum three-year expiry date. The new legislation will apply to cards and vouchers sold both in-store and online. The NSW gift card laws include: a prohibition on, and fines for, selling a gift card or voucher that is redeemable in NSW, with an expiry date of less than three years. This confusion will erode customer engagement and experience – paramount for business today. This legislation sets a minimum three year validity period and other requirements on gift cards sold nationally from 1 November 2019. New legal requirements for gift cards. If the expiry date is shown as a period of time, it must also include the date it was supplied to the customer, so you can determine the expiration date. All rights reserved. An Act to amend the Competition and Consumer Act 2010, and for related purposes [Assented to 25 October 2018]The Parliament of Australia enacts: 1 Short title This Act is the Treasury Laws Amendment (Gift Cards) Act 2018.. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of … Many consumers experience the disappointment of an expired gift card, the estimated losses from gift card expiry are considered to … Cash ban as gambling card to overhaul $6b pokie industry in NSW Consumers will also be left confused as some gift cards will have a three-year expiry period, and others will not. This means … 923 Requires that sales of gift cards be made person-to-person and requires nonrenewal and suspension of eligibility for reissuance of a violator's business tax license. Privacy and Compliance, Each month our Regulatory team delivers exclusive regulatory content via our Regulatory Affairs Newsletter, Sign up to receive ADMA newsletters, updates, trends, special offers, events, critical issues and more. The term “gift card” is defined broadly as a physical or electronic article that is of a kind commonly known as a gift card or gift voucher, and is redeemable for goods or services. The federal law defines a 'gift card' as an article that is commonly known to be a gift card or voucher, whether in physical or electronic form, and is redeemable for goods and services. Updated 31/03/2018 Shoppers in NSW will have at least three years to use gift cards under new laws that come into effect this weekend. One of the commonly used terms and conditions of gift cards are expiry dates. If there is no expiry date to redeem the card, this must also be stated. Exempt cards In October 2017, the NSW Government introduced laws requiring a minimum three year expiry period for gift cards sold to consumers in NSW. Adopts a new law in order to regulate the sale and use of gift cards, which will be known as the Law of Gift Cards. After 1 November 2019, if terms and conditions of a gift card do not comply with the reforms they will be void and the new requirements will be applied regardless of what is written on the gift card. Please tick if you'd like to receive alerts and webinar invites on the following topics: Agree to the terms of our Privacy Policy. New laws extends life of gift cards in NSW From Saturday, gift cards bought in NSW will by law have to have an expiry date of at least three years and no administration fees applied after their purchase. On 18 October 2017, the NSW Government passed the new gift card laws, meaning that NSW businesses will be required to extend the expiry date of gift cards sold in NSW to three years or face penalties of up to $11,000. Gift card expiry laws are piecemeal across the country Join our mailing list to receive breaking news and webinar invites. ADMA continues to advocate for a 12-month transitionary period, with the view to reaching industry compliance by next Christmas. After complaints dating back years, the New South Wales Government is set to introduce legislation into State Parliament forcing retailers to put a three-year minimum on gift card expiry dates. The deadline for submission of notices in the gazette of Thursday, 1 April 2021 will be 10:00am on Wednesday, 31 March 2021. The new gift card laws will bring the rest of Australia in line with New South Wales and South Australia. Tennessee H.B. It is worth noting that, based on our current discussion with the NSW Government, it appears that the laws will likely commence in April 2018. NSW gift card reforms: the gift that keeps on giving… for 3 years . In Australia 34 million gift cards are estimated to be sold each year with an estimated value of between $2 and $2.5 billion. In readiness for the changes, businesses should: 1. update gift card terms and conditions on their website and other promotional material, including on physical gift cards 2. update internal systems, training and compliance manuals 3. place signage on gift card displays and at the point of sale 4. make note of the changes on a… ADMA will continue to advocate for a sensible transitionary period and commencement date, as well as for the expansion to the exemptions to include gift cards for experiences, subscriptions, and B2B transactions where the gift cards are used as part of promotional, loyalty or employee programs. But there’s also a few catches when it comes to gift card laws – if you leave your card sitting around too long, the state may be able to claim the balance for itself. Train your staff so they are aware of the new laws – update your IT platforms, compliance manuals and carry out structured staff training. In October 2017, NSW Parliament passed amendments to the Fair Trading Act 1987 (NSW), introducing a mandatory minimum expiration period of 3 years. Following the concerns raised by ADMA the NSW Government has delayed its decision on the commencement date, initially set to be made on 3 November 2017, and is further consulting with ADMA and industry in relation to implementation issues. Sufficient time for complianceA sensible commencement date is vital to ensure businesses are able to comply with the new laws and guarantee good customer experience. ADMA is actively working with the NSW Government to ensure the implementation of the new laws is smooth so as to ensure a better customer experience. The new laws apply to gift cards issued to a consumer in NSW. In addition, concerns were raised about the viability of promotional campaigns that use gift cards or vouchers to drive demand in off-peak or slower parts of the year. However, it is interesting to note that the NSW legislation specifically excluded store credit from the application of the laws (e.g. Gift cards valid for at least three years. See Fair Trading for more … The new laws apply to gift cards or gift vouchers sold (whether in person or online) to a consumer who is in NSW at the time of sale or sold to a consumer who provides a NSW address in … The New Gift Card Regime Changes to the Fair Trading Act 1987 (NSW) will introduce a new mandatory minimum expiry period of three years for most gift cards and vouchers sold in New South Wales from 31 March 2018. The Treasury Laws Amendment (Gift Cards) Act 2018 makes amendments to the Australian Consumer Law (ACL) in Schedule 2 of the Competition and Consumer Act 2010 (Cth). If the card and the underlying money expire at different times, the card issuer should make it known which date applies. They may experience adverse impacts on cash flow and stock-take, in particular, those that issue vouchers and gift cards for experiences– in three years the cost of experience can rise significantly. Texas H.B. The NSW Government has recently passed changes affecting gift cards by enacting the Fair Trading Amendment (Ticket Scalping and Gift Cards) Act 2017 (NSW). When you give someone a gift card, you expect them to be able to use the money in full and not have to take on the burden of fees or looming expiration dates. Discuss with your accountant how the extended expiry periods will affect your revenue recognition for gift card sales (if at all). From 31 March 2018, gift cards and vouchers purchased by consumers in NSW must have a minimum expiry date of 3 years from the date of purchase. See If your business sells gift cards you’ll need to comply with new laws which come into effect from 1 November 2019. use the full value of the gift card before the expiry date - businesses do not have to honour an expired gift card; if a business is no longer trading or changes hands and you haven’t yet used your gift card, you may not be able to redeem it. Gift cards are sold across the economy by national retailers and small businesses. Gift cards can only expire five years after the date the card was purchased or the date money was last loaded onto the card. (The deadline for the gazette of Friday, 9 April will return to the usual time of midday on Thursday, 8 April 2021.) On 18 October 2017, the NSW Government passed the new gift card laws, meaning that NSW businesses will be required to extend the expiry date of gift cards sold in NSW to three years or face penalties of up to $11,000. © Australian Computer Society t/as ADMA. The new bill comes a few months after New South Wales (NSW) gift card laws came into effect, which similarly set a minimum 3 year expiry date and prohibited post-purchase fees that reduce the gift cards value. There are three key parts of the new gift card laws: The mandatory minimum expiry period for gift cards is now three years from the date the card is sold to a customer. Impact on businessThe time, resources and investment needed from a systems and logistics perspective to ensure compliance is concerning, as is the impact on businesses, especially small businesses. The new laws are part of the ‘Consumers First’ policy by the Minister for Innovation and Better Regulation, Hon Minister Kean. CATEGORY Make sure you keep an eye out for more information in relation to the NSW gift card laws in our next edition of Regulatory News or by following us on Linkedin and Twitter. NSW will move to completely cashless poker machines and players will be required to register for a government-issued gambling card. The Treasury Laws Amendment (Gift Cards) Bill 2018 has been passed into law on 18 October 2018 and received Royal Assent on 25 October 2018. The Fair Trading Amendment (Ticket Scalping and Gift Cards) Bill 2017 was passed by NSW Parliament late last year, with the rules commencing from 31 March 2018. These changes unify the law relating to gift cards across all states and territories, with these requirements being already in place in South Australia and NSW. Legal practitioners employed by or directors of Australian Business Lawyers & Advisors Pty Limited are members of the scheme. Australian Business Lawyers & Advisors (ABLA) (ACN 146 318 783) is the Trustee of Australian Business Lawyers & Advisors Trust (ABN 76 008 556 595). The roundtable highlighted that there is a lot of uncertainty for how businesses that operate online and nationally will comply with these laws. The national laws are very similar to the gift card laws in NSW, but they include that gift cards must also prominently display the expiry date as either the full date, or as a period of time. 156 S.B. This month, New York State passed a new law limiting fees and expiration dates on gift cards sold in the state.The new law requires that gift cards don’t expire for at least five years after they’re issued. Gift cards must show the expiry date Gift cards you supply from 1 November 2019 must also prominently display the expiry date as either the full date, or as a period of time. *Amendments to the NSW Fair Trading Act 1987 require that most gift cards and vouchers sold from 31 March 2018 have a 3 year expiry period. a prohibition on, and fines for, selling a gift card or voucher that is redeemable in NSW, with an expiry date of less than three years. If the expiry date is shown as a period of time it must also include the date it was supplied to the customer, so you can determine the expiration date. From 1 November 2019, most gift cards: must be valid for at least three years; must clearly show the expiry date, and; can’t include any ‘post-supply’ fees. In NSW alone, it is estimated that $60 million a year is lost on unredeemed gift cards. *Amendments to the NSW Fair Trading Act 1987 require that most gift cards and vouchers sold from 31 March 2018 have a 3 year expiry period. Expiry dates. The new laws will: Establish a minimum expiry date of 3 years on all gift cards sold to consumers; and; Prohibit charging any fee that reduces the value of the gift card, after the sale of the card. In addition, no post-purchase fees can apply to redeem the voucher (including activation fees, account keeping fees, balance enquiry fees, telephone enquiry fees and fees applied when a card is inactive or not being used). You should not be charged a fee to replace your card if it expires before the underlying funds expire (less than five years). Liability limited by a scheme approved under Professional Standards Legislation. The new laws provide for: A mandatory three-year minimum term on gift cards; In November, ADMA attended a meeting with the NSW Government to discuss these issues and identify a suitable commencement date for the new laws. You should also check to see if your state allows companies selling these cards to charge you fees for inactivity or processing, as this can make that $25 gift card a little less valuable. Any gift cards purchased on or after 1 November 2019 must be redeemable for at … Check the expiry date on your gift card or voucher carefully, as businesses are not required to honour them after this date. : By submitting this form you agree to the terms of our, Are you selling invalid gift cards? A war has erupted between the NSW government and one of the country's most powerful lobbying groups following a decision to introduce new laws for gift cards. In response to the swift implementation of the NSW gift card laws, and the lack of industry consultation prior to introducing the new laws, ADMA held roundtable consultations on 19 October 2017 with its members and other industry stakeholders to discuss the impact of the new laws on businesses. Alert customers of pre-printed gift cards of the 3 year expiry date and no post-purchase fees – this can be done by physically amending the cards at the point of sale, making a hand written note on the receipt of purchase, updating your terms + conditions of sale and/or installing signage at the physical location of pre-printed gift cards to notify of the changes. A gift card is defined as a card or voucher in hard copy or electronic form that is redeemable for goods or services in NSW. Some other concerns raised by members during our consultation included the following. The NSW Government is set to announce its new Gift Card laws that will require NSW businesses to extend the expiry date of gift cards to all NSW consumers to at least 3 years or face penalties of up to $11,000.