Gift Cards Get a Longer Life: What the Fair Trading (Gift Card Expiry) Amendment Act 2024 Means

The reforms are aimed at reducing consumer losses caused by short expiry periods and improving transparency at the point of sale.

A minimum three‑year expiry period

From 16 March 2026, gift cards sold to consumers must have an expiry date of at least three years from the date of sale. Any gift card sold with a shorter expiry will not comply with the law. If a non‑compliant expiry date is included, the expiry date cannot be relied on by the supplier, and the card will legally be treated as expiring three years after it was sold. The new rules apply to both physical and digital gift cards and vouchers sold in trade.

Clear and prominent expiry information required

Businesses must also ensure that expiry information is prominently displayed on gift cards. This can be done by stating:

• the exact expiry date, or
• the month and year of expiry, or
• the date of sale and the period the card is redeemable, or
• that the gift card has “no expiry date”.

These requirements are designed to ensure consumers can easily understand how long they have to use a gift card at the time of  purchasing or gifting it.

What counts as a “gift card”?

The Act adopts a broad definition, covering most cards or vouchers redeemable for goods or services. However, several products are excluded, including:

• debit and credit cards;
• prepaid cards for telecommunications, utilities, or public transport;
• most loyalty programme rewards;
• vouchers for time‑limited events (such as festivals or concerts), and
• cards sold primarily for charitable fundraising.

Why this change matters

Unredeemed gift cards can represent a real financial loss for consumers. By extending minimum expiry periods and requiring clearer disclosure, the new law aims to promote fairness, increase consumer confidence, and bring New Zealand into line with comparable overseas jurisdictions.

What businesses should do now

With the Act coming into force, businesses that sell gift cards should ensure that:

• expiry periods are set to at least three years,
• non‑compliant terms are removed,
• expiry information is clearly displayed, and
• staff are aware of the new requirements.

Non‑compliance can result in enforcement action under the Act which could include fines of up to $30,000 per offence, corrective advertising orders and of course reputational risk.

Staying compliant with consumer legislation is an essential part of managing legal and reputational risk. With ongoing changes to the Act and increasing regulatory scrutiny, businesses should regularly review their sales practices, terms and conditions, and consumer disclosures. Our commercial team can assist with practical compliance reviews and tailored advice to help ensure your business meets its obligations and avoids unnecessary risk.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.