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Gift cards |
Gift cards are a convenient and popular product for many thousands of consumers.
However, there are significant concerns in the community about the large amount of money consumers lose on gift cards every year due to expiry dates and other terms and conditions.
On 3 June 2011, Australia´s consumer affairs and fair trading Ministers agreed to develop options to better protect consumers who purchase gift cards.
In the meantime, businesses offering gift cards are encouraged to:
- Provide a reasonable time period in which the card can be redeemed. We recommend allowing at least two to five years. Make the expiry date prominent on the card.
- Do not set limits on the minimum amount that a consumer must spend on the gift card. For instance, if a customer wants to use a gift card with a low remaining balance (for example, $4), the customer should not have to spend a minimum amount (for example $5 or $10) in order to use their gift card.
- Offer cash change for small amounts remaining on the card. For example, if the gift card is for $100, and the consumer has redeemed at least $90, you should offer to pay the rest of the original value out in cash.
- If the gift card is for a shopping centre or group of stores, make it clear which stores are included and which are excluded.
- Record the details of any gift cards you sell, so that you can replace lost or stolen cards.
- Allow customers to check the balance remaining on their gift card for free. An online method is preferable, but if not, the service should be available in-store.
- Provide a copy of your terms and conditions to the purchaser and encourage them to pass it on to the gift card recipient. You should also make your terms and conditions readily available on your website and in-store.
- Make consumers aware of what will happen if your business changes hands or goes into administration, receivership or liquidation. We encourage businesses to take steps to ensure gift cards are honoured by the new owner if you sell your business.
Last reviewed 28/11/2011 |
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