New rules will make gift cards more generous - but not until next year, and shoppers are being warned to be wary this Christmas.
From March next year, gift cards will be required to have an expiry date not less than three years from the date the card was sold.
But the law change only takes effect for cards sold from that point so people are being warned to check the terms and conditions of any they buy this month.
National MP Dan Bidois said during the final reading of the bill to enact the change that people in New Zealand could be losing anything from $20-$40 million in unused gift cards every year.
Consumer had been pushing for a five-year expiry date but said the three-year rule was a win for consumers. It said gift cards could be nothing more than a "gift to the retailer" if the expiry date was short and people did not have time to use them.
Consumer NZ spokesperson Abby Damen said the law change was the result of "years of campaigning" to end unfair gift card expiry dates.
The change brings us in line with Australia.
But in Australia, shoppers have been warned about "activation" rules. It was reported that a man was caught out when he did not activate gift cards given to him by his employer in time.
He was told the cards had to be activated within six months of being issued.
The Australian regulator said gift card laws should void any terms and conditions that reduced a gift card expiry to less than the three years Australia's law required.
The same should apply here, Damen said.
"If a retailer attempts to claim gift cards have to be activated within a certain time frame, we think this would breach the Fair Trading Act. However, the new rules don't apply to all gift cards.
"For example, if you return something to a store and are issued a credit note or gift card, this doesn't have to be valid for three years so be sure to read the fine print," Damen said.
"While we're thrilled to see a minimum three-year expiry on gift cards from next year, nothing truly beats gifting cash - no strings attached."
Some cards are excluded from the rule change, including a voucher supplied when items are returned, a public transport voucher, a debit card that allows cash withdrawals or loyalty programme cards.
Consumer Protection advises that is may be a good idea to buy vouchers that can be used at more than one shop, and check how it can be redeemed.
It also said people should buy vouchers by credit card so that if the business went into liquidation soon afterwards, the transaction could be reversed. Voucher-holders are often out of pocket when a business fails.
It said gift vouchers should not have any additional fees or charges, although Prezzy Cards did have a fee.
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