Gift card expiry rules: what issuers need to know

Gift cards will be required to have an expiry date that is no less than three years from the date of sale or state that no expiry date applies. The new requirements are intended to improve fairness for consumers and bring New Zealand’s laws into closer alignment with Australia.  

To assist gift card issuers, the Commerce Commission has published guidance on gift card expiry requirements, available here: Gift Card Expiry Requirements.

Outlined below are the key requirements that gift card issuers need to know to comply with the new rules.

Which gift cards are covered by the new requirements?

Under the Fair Trading Act 1986, a “gift card” is any card or voucher (in any form) redeemable for goods or services. However, the following are excluded:

• gift cards issued in relation to returned goods;
  
  
• prepaid gift cards redeemable only for telecommunications, public transport, or certain utilities services;
  
  
• debit, credit, and travel cards, or similar cards that allow for cash withdrawals;
  
  
• gift cards issued as part of a customer loyalty programme (unless loyalty points were redeemed in exchange for the gift card);
  
  
• gift cards for use at a limited-time event; or
  
  
• gift cards sold to raise funds for charity. 

Only gift cards that are “sold” are captured by the new rules. The Commerce Commission’s (Commission’s) position is that a gift card is sold where it forms part of a sale (for example, bundled as a free gift with a specified purchase), as well as where it is directly sold.

What are the new requirements?

From 16 March 2026, gift cards cannot be sold with expiry dates of less than three years from the date of sale. The new requirements are enacted under the Fair Trading (Gift Card Expiry) Amendment Act 2024.

If a gift card is sold with a shorter expiry date, card holders are still entitled to use the gift card for up to three years from the date of sale.

The expiry date must also be stated prominently on the gift card in one of three formats:

• expiry date;
  
  
• expiry month and year; or
  
  
• the date of sale and how long after that date the card is redeemable for (e.g. “three years”).

Alternatively, gift cards can be issued with no expiry date, as long as this is prominently stated on the card. 

What about promotional gift cards?
The Commission’s guidance on Gift Card Expiry Requirements addresses gift cards issued as part of a promotion. While not binding, it reflects how the Commission intends to apply the new rules. Whether gift cards are captured depends on whether the gift card is “sold”.

Key distinctions include:

Must comply with new expiry rules	Not subject to new expiry rules
Bonus bundled gift cards: gift cards bundled with the purchase of other goods or services (e.g. a NZ$100 gift card included as a gift with the purchase of a particular product). This is also likely to cover gift cards bundled with purchases over a specified value (e.g. a NZ$100 gift card included as a gift with any purchase of NZ$1,000 or more).	Spend rewards: vouchers automatically issued upon reaching a certain loyalty spend threshold (e.g. a NZ$30 voucher issued when a customer reaches 300 loyalty points).
Gift cards purchased using loyalty points: gift cards that a loyalty member chooses to ‘purchase’ in exchange for loyalty points (for example in an online store operated by a loyalty scheme).	Free giveaways: gift cards given out for free with no requirement to purchase (such as a NZ$20 voucher handed out on the street to encourage store visits).

What are the penalties for non-compliance?

A breach of the new gift card requirements is an offence under the Fair Trading Act 1986, with a fine of up to NZ$30,000 for companies. The Commission can also seek court orders, including requiring corrective advertising.

What do gift card issuers need to do before 16 March?

• Review and update physical gift cards and e-gift cards, including any associated terms and conditions, to ensure the expiry date is no less than three years from the date of sale or state that no expiry date applies.
  
  
• Assess gift cards issued as part of a promotion, to determine if the new gift card requirements apply – the Commission has indicated that it will take a broad approach to whether such cards are captured. 
  
  
• Ensure that gift cards and any associated promotions comply with the general Fair Trading Act 1986 principles (even if they are not captured gift cards) – for example, that expiry dates are clear and promotional materials are not misleading.
  
  

Gift card issuers are not required to make any changes to gift cards issued before 16 March 2026 and shorter expiry dates on gift cards issued before 16 March 2026 are still enforceable.

For assistance with preparing for the upcoming changes, please get in touch with the contacts listed or your usual Bell Gully adviser. 

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Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.