Legislative Council Fifty-Fourth Parliament, First Session (54-1) 54 1 Parliament of South Australia Legislative Council published Bills Fair Trading (Gift Cards) Amendment Bill Fair Trading (Gift Cards) Amendment Bill Fair Trading (Gift Cards) Amendment Bill Second Reading Second Reading Adjourned debate on second reading. (Continued from 7 June 2018.) The Hon. F. PANGALLO Legislative Council The Hon. F. PANGALLO (17:23): I rise to speak in support of the Fair Trading (Gift Cards) Amendment Bill 2018, which amends the Fair Trading Act 1987 to require any gift cards sold in South Australia to have a minimum three-year expiry date. This bill is common-sense consumer protection and a bill that should have been introduced before this time, given the popularity of gift cards and the tendency of many of us to store and forget them until it is too late. Consumers deserve the power to choose when and how they spend gift cards, rather than being forced to spend them within a relatively short time frame to beat the forced expiry date. Streamlining gift card expiry dates is a relatively simple manoeuvre, though it provides significant certainty to consumers and, consequently, the economy generally. We cannot allow revenue to be lost over something as simple as consumers running out of time to spend a gift card. It is abundantly clear the current system fails to reasonably balance the needs of everyday consumers and businesses. I agree with the minister that consumer economics is a two-way street as the purchase of a gift card still involves expectations that the seller will provide the consumer with goods and services. An efficient consumer economy is not one plagued by confusion regarding the plethora of different gift card terms and conditions that businesses apply. Additionally, the current system has allowed business practices to adopt an undue degree of informality, as some businesses have accepted gift cards while others have not. The last thing consumers need is a situation where businesses decide whether or not to play by their own rules as this creates a disorderly consumer market undermining the relevance of consumer contract law. While I acknowledge the consumer market's diversity, the needs of everyday consumers are equally diverse and this parliament needs to apply a rules-based approach to this economic and financial diversity. I also commend the minister for promising targeted consultation to reduce any potential disruption this bill may create. In this case, the government has demonstrated its willingness to adopt an approach of consumer protection, emphasising cooperation with businesses, rather than attacking them. This arguably explains why the minister has anticipated the bill's negative financial effect to be minor. I note the minister's statement that the current system's reliance on the Australian Consumer Law to limit compensation opportunities to unfair contract situations is excessively restrictive. I would like to add, the bill stands to reduce the frequency of legal disputes arising from gift card terms and conditions as fair and uniform provisions will prevent consumers, tribunals and civil courts from having to determine which particular terms and conditions of gift cards are unfair. In this respect, the bill will provide considerable legal certainty to both consumers and businesses. Further, it would be commendable for South Australia to adhere to the recommendations of the consumer group Choice and allow the examples set by recent and successful New South Wales reforms. I commend the minister for alerting the national Consumer Affairs Forum of the proposed gift cards reforms and hope the move ultimately encourages the federal government to follow through with uniform national laws for gift card expiry dates. Moreover, I agree with the minister that consumers deserve to receive what they paid for without being forced to make purchases that do not reflect their needs or desires. Consumers can be placed at a financial loss if they cannot spend their gift cards, for simple reasons such as the lack of time or the seller's failure to present appealing goods or services. In this respect, the bill is likely to help consumers hold businesses accountable for the quality of the goods and services they provide. This stands to bolster both consumer confidence and market competition. As the minister has noted, the negative financial effect on stakeholders is anticipated to be minor. Ultimately, the bill stands only to modernise our economy by preventing the validity of gift cards being subject to the whims of individual businesses. I therefore strongly encourage this council to pass the bill as there is little within it to raise concern. Debate adjourned on motion of Hon. T.J. Stephens.