1	Title
2	Commencement
3	Principal Act
4	Section 36A amended (Purpose of Part)
5	New subpart 3A of Part 4A inserted
		Subpart 3A—Gift card expiry dates
	36WA	Definitions
	36WB	Gift card expiry date must not be less than 3 years
	36WC	Expiry date must appear prominently on gift card
6	Section 40B amended (Infringement offence, etc, defined)
7	Section 41 amended (Injunctions may be granted by court for contravention of Part 1, Part 2, Part 3, and Part 4)
8	Section 42 amended (Order to disclose information or publish advertisement)
9	Schedule 1AA amended
10	Consequential amendments to Fair Trading (Infringement Offences) Regulations 2014
	Schedule 1 New Part 3 inserted into Schedule 1AA
	Schedule 2 Consequential amendments to Fair Trading (Infringement Offences) Regulations 2014
	Legislative history
	Administrative information

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Fair Trading (Gift Card Expiry) Amendment Act 2024.

2 Commencement

This Act comes into force 18 months after Royal assent.

3 Principal Act

This Act amends the Fair Trading Act 1986.

4 Section 36A amended (Purpose of Part)

After section 36A(c), insert:

(ca)

gift card expiry dates; and

5 New subpart 3A of Part 4A inserted

In Part 4A, after section 36W, insert:

Subpart 3A—Gift card expiry dates

36WA Definitions

In this subpart, unless the context otherwise requires,—

expiry date, in relation to a gift card, means the date on which the gift card ceases to be redeemable

gift card means a card or voucher (in whatever form) that is redeemable for goods or services, but does not include—

(a)

a card or voucher supplied in substitution for goods returned to the supplier of the goods; or

(b)

a prepaid card or voucher redeemable only for telecommunication services, public transport, or electricity, gas, or water services; or

(c)

a debit card, credit card, prepaid travel card, or other similar card that allows cash withdrawals; or

(d)

a card or voucher supplied as part of a customer loyalty programme (other than a card or voucher supplied in exchange for a reduction in customer loyalty points); or

(e)

a card or voucher redeemable only for goods or services available at a time-limited event (such as a festival, concert, or similar event); or

(f)

a card or voucher sold principally to raise funds for a charitable purpose.

36WB Gift card expiry date must not be less than 3 years

(1)

A person must not, in trade, sell to a consumer a gift card with an expiry date that is less than 3 years after the date of sale of the gift card.

(2)

A term or condition of a gift card sold to a consumer is void to the extent that it contravenes subsection (1).

(3)

If the expiry date of a gift card is void because of subsection (2), the expiry date is taken to be 3 years after the date of sale of the gift card.

36WC Expiry date must appear prominently on gift card

A person must not, in trade, sell to a consumer a gift card unless the card states prominently when it ceases to be redeemable by reference to one of the following:

(a)

the expiry date:

(b)

the month and year the gift card ceases to be redeemable:

(c)

the date the gift card is sold and a statement that identifies the period during which the gift card is redeemable:

(d)

the words “no expiry date” or words to that effect.

6 Section 40B amended (Infringement offence, etc, defined)

In section 40B, definition of infringement offence, after paragraph (d)(iv), insert:

(v)

section 36WB (gift card expiry date must not be less than 3 years):

(vi)

section 36WC (expiry date must appear prominently on gift card).

7 Section 41 amended (Injunctions may be granted by court for contravention of Part 1, Part 2, Part 3, and Part 4)

(1)

In the heading to section 41, replace “Part 1, Part 2, Part 3, and Part 4” with “specified provisions”.

(2)

In section 41(1)(a), after “Parts 1 to 4”, insert “or section 36WB or 36WC”.

8 Section 42 amended (Order to disclose information or publish advertisement)

In section 42(1), after “Parts 1 to 4”, insert “or section 36WB or 36WC”.

9 Schedule 1AA amended

In Schedule 1AA,—

(a)

insert the Part set out in Schedule 1 of this Act as the last Part; and

(b)

make all necessary consequential amendments.

10 Consequential amendments to Fair Trading (Infringement Offences) Regulations 2014

Amend the Fair Trading (Infringement Offences) Regulations 2014 as set out in Schedule 2.

Schedule 1 New Part 3 inserted into Schedule 1AA

s 9

Part 3 Provision relating to Fair Trading (Gift Card Expiry) Amendment Act 2024

3 Amendments do not apply to existing gift cards

The amendments made by the Fair Trading (Gift Card Expiry) Amendment Act 2024 do not apply to a gift card sold before the commencement of that Act.

Schedule 2 Consequential amendments to Fair Trading (Infringement Offences) Regulations 2014

s 10

In the Schedule, form 1, under the heading “Alleged infringement offence”, after the seventh bullet point, insert:

contravening section 36WB of the Act (gift card expiry date must not be less than 3 years)†
contravening section 36WC of the Act (expiry date must appear prominently on gift card)†.

In the Schedule, form 2, under the heading “Alleged infringement offence”, after the seventh bullet point, insert:

contravening section 36WB of the Act (gift card expiry date must not be less than 3 years)†
contravening section 36WC of the Act (expiry date must appear prominently on gift card)†.

Legislative history

10 November 2022		Introduction (Bill 184–1)
1 August 2023		First reading and referral to Economic Development, Science and Innovation Committee
1 May 2024		Reported from Economic Development, Science and Innovation Committee (Bill 184–2)
31 July 2024		Second reading
21 August 2024		Committee of the whole House
11 September 2024		Third reading
16 September 2024		Royal assent

This Act is administered by the Ministry of Business, Innovation, and Employment.

Fair Trading (Gift Card Expiry) Amendment Act 2024