LAW REPORT
Law and the Holiday Season
Ingrid Pagura | BA , LLB
It is that time of year again where your clients , or members of the public , are buying gifts from you . These could include gift vouchers or products or services . I thought it would be a good idea to remind everyone of their obligations in this area of the law .
As you may remember from previous articles , the Australian Competition and Consumer Act 2010 ( ACL ) came into force on 1 January 2011 , meaning that this law is uniform across Australia . Each state and territory is administered by the Department of Fair Trading within that state . ( Please note that in some states it is called Consumer Affairs .)
First - following on from my article in the September issue of JATMS - in order to be a consumer , you must effectively have a contract . That is generally very easy to prove when someone has bought something from you ( i , e ., there has been an exchange between you and the provider ). Even if a person bought the item in question for someone else ’ s use , there still exists a contract .
So , let ’ s look at a couple of issues .
Gift cards / vouchers
We know that many people love to buy a voucher for someone to be used for a service or products .
All gift cards sold on or after 31 March 2018 in NSW , and on or after 1 November 2019 everywhere else in Australia , must bear a 3-year expiry date . The 3-year period begins from the date a gift card is sold to a customer . Of course , individual business can choose to provide longer than 3 years , as there is no maximum expiry date .
The gift card must have the expiry date prominently displayed . This can include visually adding the actual expiry date or verbally stating that the card expires 3 years from the purchase date , and then having the purchase date written on the card .
There are some exceptions to this rule . For example , the 3-year expiry doesn ’ t apply if you have given the voucher for free as part of a rewards program , or as a bonus when buying something , or if it was exchanged for goods returned by the purchaser .
So , what should you do next ?
When you sell a gift card , check the expiry date . Make sure it is clearly printed on the card . Treat these cards like cash , which means you should also provide a receipt .
Consumer guarantees
Every consumer who buys products or services in Australia has certain guarantees . These are automatic . Every product or service must be of acceptable quality . “ Acceptable quality ” requires that the products or services :
• are safe , lasting and with no faults ;
• look acceptable ; and
• do all the things someone would normally expect them to do .
Products must also , among many other things :
• match descriptions made by the salesperson , on packaging and labels , and in promotions or advertising ;
• match any demonstration model or sample you asked for ;
• be fit for the purpose the business claimed for it , and for any other purpose that you notified to the seller before purchasing and which they acknowledged ;
• meet any extra promises made about performance , condition and quality , such as lifetime guarantees , and money back offers ;
226 | vol29 | no4 | JATMS