Edition 1 - StateMON 07 JUN 2010, Page 009
A $360m gift for retailers --- Vouchers going unspent --- EXCLUSIVE
By John Rolfe
ABOUT $360 million worth of store gift cards bought this year will never be spent, with the nation's top consumer group calling for a code of practice to control their use.
Australians are forecast to buy $1.2 billion worth of gift cards in 2010 but 30 per cent will not be redeemed.
Research shows that three of the main reasons are the card recipient doesn't want anything the issuer sells, they can't reach a store or they lose the card.
But the other reason is that some cards expire too soon.
When a card expires with some or all of the credit unredeemed, it's usually great news for the issuer.
While it is possible to re-activate some cards -- at a cost -- other issuers just add the unused portion to their profits.
``We think there is a need for a code of practice for gift cards that would include some flexibility for expiry dates,'' Choice spokesman Christopher Zinn said.
``We are hearing of more and more detriment. Some issuers are so inflexible. They bring up the draw bridge at one second after midnight on the day of expiry,'' he said.
He was particularly critical of Westfield's gift card structure.
While some issuers such as Coles, David Jones and Myer give their cards a two-year life, Westfield's cards last just 12 months.
A Westfield spokeswoman said the 12-month validity was ``stated clearly on the back of the gift card itself, as well as on the terms and conditions which are available at all Westfield customer service desks and online''.
Mr Zinn said: ``Westfield say they have some sort of board of review. But I can't believe Frank Lowy sits there and looks at all of them. The whole process doesn't seem transparent.
``Why only one year? Why not some flexibility?''
While gift cards may appear a good gift because of the flexibility they offer, such is the extent of card non-use that a business has sprung up allowing cards to be on-sold.
``It's an opportunity for people to redeem their gift cards for cash,'' said Cardlimbo.com.au CEO Fergus Koochew. Cardlimbo launched in March and has already had 15,000 visits.
Source: Daily Telegraph newspaper, NSW, Monday 7th June, 2010, page 009
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