Consumer estimates New Zealanders lose more than $10 million on unspent gift cards every year and advises shoppers to research before gifting vouchers this Christmas.
The watchdog has issued a "naughty list" of retailers whose gift cards are issued with a 12-month expiry date, putting a countdown on chances to use the vouchers.
Gemma Rasmussen, head of research and advocacy at Consumer, says unfair gift card expiry dates mean some cards seem to act more like a gift to retailers than to ourselves or others.
Rasmussen told Seven Sharp on Thursday: "It really does pay to check before you buy".
"We think having one year or a couple of months really isn't enough for people."
According to Consumer, gift vouchers are often a sweet deal for retailers with payment in advance and the prospect of further sales when the card is used. Retailers also have the chance to keep any remaining money once the card expires.
“One in four gift card holders end up stuck with a card they can't use because either the card has expired or the retailer’s gone bust. And more than half of gift card holders unable to redeem their voucher still had more than $20 unspent.”
Consumer has issued a warning on cards from outlets in what the watchdog calls a "naughty list" with 12-month expiry dates, including:
- Bendon Lingerie (e-gift cards last 3 years)
- Booksellers
- Event Cinemas
- Freedom Furniture
- Hoyts Cinemas
- Just Jeans
- Mobil Oil
- Restaurant Association
- Smiggle
- Smiths City
- Stirling Sports
- Ticketmaster
- Westfield Shopping Centres
Meanwhile, the Consumer "nice list", for cards with no expiry dates, included:
- Apple Store
- Baby Factory
- Barkers
- Bunnings
- Countdown
- EB Games
- Farro Fresh
- Foot Locker
- Glassons
- Hallensteins
- JB Hi-Fi
- Kathmandu
- Macpac
- Noel Leeming
As well as offering stingy expiry periods, some gift cards can also be hard to use.
"Half of gift card users experience problems using their card – from checking their balance to only being able to use their card at limited stores and, crucially, finding something to buy,” Rasmussen says.
“We don’t think it's fair that retailers can pocket your money without providing something in return. We have been calling for gift cards to be valid for a minimum of five years, which aligns with what shoppers in the US are entitled to.
“Unless the retailer offers a fair redemption period, we recommend gifting cash. Not only is it nostalgic, there are no strings attached.”
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