From 16 March 2026, “gift cards” sold to consumers in New Zealand will need to have at least three years expiry date, with the Fair Trading (Gift Card Expiry) Amendment Act 2024 (Act) having recently been passed into law. 

In this article we discuss the new Act, which modifies the Fair Trading Act 1986, providing consumers with a longer period to use their gift cards/vouchers.

What is a “gift card” under the Act?

Under the Act, a “gift card” is broadly defined as a card or voucher, in any form (such as a physical or digital card), that is redeemable for goods or services.

Given this broad definition, a “gift card” captures just about all kinds of prepaid instruments beyond just your traditional gift cards. 

That said, “gift card” excludes:

• a card or voucher supplied in substitution for returned goods; 
• a prepaid card or voucher for telecommunication services, public transport, or utilities;
• a debit, credit, or prepaid travel card allowing cash withdrawals; 
  a card or voucher supplied as part of a loyalty program (excluding those reducing points);
• a card for time-limited event goods or services (such as a festival); or 
• a card or voucher sold for fundraising for a charitable purpose.

Why the change?

The legislative change aims to enhance fairness and consumer rights in the retail market by addressing potential advantages businesses gain from unredeemed gift cards. Extending the expiry period is intended to reduce consumer financial losses and foster trust and transparency between consumers and retailers.

Our opinion

The extension of gift card expiry periods to three years strikes a balance between businesses and consumers, marking a welcome change. This amendment will align New Zealand more closely with international standards, as Australia already has a minimum three-year expiry date, the United States enforces a minimum five-year expiry date, and Canada bans expiry dates on gift cards altogether.

Get in touch

If you would like to discuss any aspect of this article, and what this might mean for you, please get in touch with one of our experts.

Special thanks to Priya Prakash and James Burnett for their assistance in writing this article.