NSW retail groups oppose tighter gift card rules
The Australian Retailers Association (ARA) has strongly opposed the NSW gift card reforms, claiming the proposed regulation will significantly disadvantage consumers, hurt small businesses and place NSW at a competitive disadvantage to other states.
The ARA on behalf of the NSW Business Chamber (NSWBC), Australian Sporting Goods Association (ASGA), Franchise Council of Australia (FCA), Pharmacy Guild of Australia (PGA), and Restaurant and Catering Australia (RCA) all disapprove of the proposed reforms to NSW gift cards as previous federal inquiries into the operation of gift cards have found no associated consumer benefit to altering the regulations.
ARA executive director, Russell Zimmerman, said the industry groups are concerned that members and the business community were not properly notified of these reforms and believes implementing any changes without consultation to key stakeholders is concerning.
“Introducing a three-year minimum expiry limit for gift cards within New South Wales places an unnecessary regulatory burden and significant additional administrative costs on small, medium and large businesses,” Zimmerman said.
“It is unreasonable to expect small retailers and family businesses to amend their administrative practices and incur extra liabilities on their books simply to respond to unnecessary regulation,” he said
“Gift cards are issued to consumers free-of-charge, with the majority used within their first 12 months. Increasing red tape and imposing conflicting rules on gift cards from retailers who operate across the nation will simply not work,” Zimmerman said.
“This will restrict trade and competition between New South Wales and other states, and there is no means of monitoring the use of gift cards across borders,” he said.