Consumer NZ calls for end to gift card gotchas

3 September 2016

Consumer NZ calls for end to gift card gotchas

Shoppers could be losing millions of dollars each year because of unfair expiry dates on gift cards, Consumer NZ’s latest research has found.

Consumer NZ chief executive Sue Chetwin says more than 70 percent of shoppers regularly buy and receive gift cards. “Gift cards are a quick fix for shopping dilemmas. But unfair expiry dates mean many consumers are getting stuck with cards they can’t redeem,” she says.

When a card expires, the retailer keeps any remaining money. Results of a Consumer NZ survey indicate the amount being lost could add up to millions of dollars.

“We found one in five gift card recipients had been left empty-handed after the card expired before they could redeem its full value. Based on the typical gift card value, we estimate consumers could be losing as much as $10 million annually,” Ms Chetwin says.

Consumer NZ reviewed 60 gift cards and found more than half expired after just 12 months.

“The meanest gift card was Ticketek’s – it runs out after just six months,” Ms Chetwin says.

Consumer NZ is calling for retailers to remove unfair expiry dates from their gift cards.

Ms Chetwin says other countries have already taken action to get rid of these dates. Most Canadian provinces have banned expiry dates. Gift cards in the US are required to have an expiry date of at least five years.

The majority of Kiwi consumers are in favour of rule changes here. “Our survey found 54 percent of those who had a view thought gift cards should have no expiry date. Thirteen percent thought if there was a date, it should be up to five years.”

Consumer NZ has this week written to the following 10 major brands asking them to lead the way and ditch the expiry dates on their cards: Briscoes, Countdown, Kathmandu, New World, Noel Leeming, Paper Plus, Prezzy Card, Ticketek, Toyworld and Westfield.

Some retailers don’t impose expiry dates showing they can be removed without causing problems, Ms Chetwin says.

Consumer NZ wants to hear from shoppers who have been stuck with an expired card. Shoppers can also register their support for change at consumer.org.nz.

Gift card facts

• 77 percent of consumers regularly receive gift cards.

• $50 to $70 is the most common gift card value.

• 24 percent of gift card users have been stuck with a card they can’t fully redeem because it’s expired or the store has gone out of business.

• The majority of shoppers unable to redeem a gift card had more than $20 still unspent.

• 50 percent of gift card users have experienced problems with their card including finding it hard to check the balance (28 percent); only being able to use the card at a limited number of stores (19 percent); and struggling to find something to buy (18 percent).

Data are from an online survey of a nationally representative sample of 1029 New Zealanders aged 18 years and over. The margin of error is +/-3.06 percent.

© Scoop Media