Retail NZ is calling for further exemptions to the new gift card expiry laws, warning that some rules could unintentionally burden small businesses.

The Fair Trading (Gift Card Expiry) Amendment Act 2024, which came into effect on Monday, requires most gift cards sold to consumers to carry a minimum three-year expiry. The move aims to protect consumers from losing value on short-term cards.

However, Retail NZ says guidance from the Commerce Commission has created uncertainty about which cards are captured under the law. CEO Carolyn Young said members had raised questions about a wide range of cards, including ‘buy nine get one free’ coffee cards and loyalty program vouchers. 

“While we are grateful for the guidance the Commerce Commission published late last month in response to our many queries, some of the interpretations are not what our members were expecting,” said Young. 

Retailers applying expiry dates to manage liability may now face compliance challenges, especially smaller operators, she added. The Commerce Commission advises that if an expiry is applied, it must allow at least three years to spend any loaded funds.

Retail NZ is urging the Government to amend the law to clarify further exclusions, ensuring it protects consumers without placing unintended pressures on small businesses. 

The body says a targeted review would help the legislation meet its original consumer-protection intent while giving retailers practical flexibility for everyday prepaid cards.

“Small businesses with these cards often feel they must apply expiration dates to keep their liability in check. This change now causes compliance headaches, as well as putting more debt pressure on SMEs during tough economic times,” Young added. 

• Further reading: ‘Serious risk of harm’: Retail NZ rebuffs citizen’s arrest plan.