Parliamentary Question to the Minister for Jobs, Enterprise and Innovation

To ask the Minister for Jobs, Enterprise and Innovation in view of the large number of gift vouchers which will be purchased in the coming weeks prior to Christmas and in view of the large number of these that will lapse prior to being redeemed, if it is possible to legislate to ensure that such gift vouchers remain valid for as long as the provider remains in business; and if he will make a statement on the matter?

Minister for Jobs, Enterprise and Innovation (Mr Bruton)

I propose to take questions 209 and 216 together. 

In view of the maximum harmonisation nature of Directive 2005/29/EC on Unfair Commercial Practices, it would not be possible to introduce legislative provisions regulating the expiry date or other terms and conditionsof gift vouchers within the framework of unfair commercial practices law as given effect in the Consumer Protection Act 2007.

Such regulation may be possible within the framework of the legislation on unfair terms in consumer contacts, but a number of issues around such regulation would require consideration and clarification. My Department is currently reviewing this legislation as part of a wider review of consumer contract rights law, and I have asked that possible provisions to regulate the expiry date and other terms and conditions of gift vouchers be examined as part of this review.

I am not aware of any specific statutory provisions on gift cards and vouchers in other EU Member States. Federal legislation in the US prohibits the sale of gift cards with an expiry date of less than five years, while legislation in a number of Canadian provinces prohibits expiry dates for gift cards other than in very limited circumstances. A recent detailed review of gift card products by the Australian Consumer Affairs Advisory Council, however, concluded that there was insufficient evidence of consumer detriment to warrant a regulatory response.