Retailers have greater clarity on the impact of the new gift card expiry law following Commerce Commission guidance.

New legislation requiring gift cards to have a minimum expiry date of three years will take effect on March 16, after the amendment to the Fair Trading Act was passed in September 2024. 

The latest guidance makes it clear that any gift card or voucher sold – whether in exchange for money, as a deduction in loyalty points, or bundled with the purchase of any other goods or services – must adhere to the new rules.  

Prepaid top-up cards for telecommunication services, public transport, electricity, gas, or water services are excluded from the changes. Other prepaid top-up cards will be required to adhere to the new minimum expiry. 

Gift cards given out for free will be exempt. 

“With just over two weeks until the new rules come into force, it’s important retailers have clarity around exactly how they will be interpreted, with many businesses that offer gift cards, vouchers and loyalty programs having been faced with uncertainty over exactly what will be captured under the new law,” said Retail NZ CEO Carolyn Young. 

“This clarification is useful for retailers to understand what is captured by these new rules. 

“While it might not be the news that some businesses will have been hoping for or expecting, it provides clear guidance that they can now use to make the relevant adjustments,” she added.