Gift Vouchers are a great way for your business to entice new customers into your premises and is also a handy way to up-sell a transaction. However there have been some changes to the conditions surrounding gift cards so we have put together some of that information for you to check to make sure you are up to date with all the
Be aware of upcoming changes concerning gift cards.
Many businesses regularly issue gift cards (also known as gift vouchers) to customers.
If your business does this, it is very important that you be aware of a number of changes to the Australian Consumer Law in relation to gift cards, in order to ensure that you comply with your obligations. These changes will take effect from 1 November 2019.
As from 1 November 2019, the following changes to the Australian Consumer Law apply to most gift cards:
a. The gift card must be valid for at least three years from the date on which it is supplied to the customer.
b. The following information must now appear prominently on the gift card:
The date on which the gift card will cease to be redeemable; or
The month and year in which the gift card will cease to be redeemable; or
The date on which the gift card was supplied, and the period during which the gift card is redeemable; or
the month and year the gift card was supplied, and a statement that identifies the period during which the gift card is redeemable; or
if applicable, the words “no expiry date” or words to that effect.
Whether the relevant statements on your gift cards complies with the new laws and are displayed prominently enough depends on the circumstances of each case. RNG Lawyers is happy to review your specific gift card and provide advice to you in relation to this issue.
c. The terms and conditions that apply to the gift card must not require the customer to pay a post-supply fee in relation to the gift card.
A post-supply fee means a fee or charge that is payable in relation to the gift card after it is supplied to a customer. A post-supply fee is a fee or charge that is payable after it has been supplied to a consumer, other than fees and charges of the following nature:
fees or charges for making a booking if those fees or charges are the same, or substantially the same, as the fees or charges that apply when making the booking using a payment method other than a gift card;
fees or charges for exchanging currencies;
fees or charges relating to the reissue of a gift card that has been lost, stolen or damaged;
fees or charges that are payment surcharges (within the meaning of the Australian Consumer Law).
It is very important that you comply with your obligations under the Australian Consumer Law in relation to gift cards, as if you do not the consequences include that a financial penalty may be imposed for your breach of the relevant provisions.
Our experienced commercial lawyers at RNG Lawyers proudly assist a large number of commercial clients in relation to a wide range of commercial matters.
Please feel free to contact one of our Commercial Lawyers if you require us to review the proposed terms and conditions of your gift cards in order to check whether they comply with the requirements of the Australian Consumer Law.
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