<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Gift cards seem like a convenient </span><a href="https://www.9news.com.au/christmas" rel="" target="_blank" title="Christmas"><span>Christmas</span></a><span> present when you're shoulder-to-shoulder with hundreds of other tired shoppers during the silly season.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But are you really spending your money wisely?</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to Melbourne University Professor of Law Jeannie Paterson, it is far more economic to simply give a loved one a card with cash.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/exclusive-carol-and-robert-gould-legal-fight-after-injury-results-in-thumb-amputation/bf5ff8a4-3487-4ec8-8e56-e2f2e612edb3" target="_blank"><strong><span>Robert's thumb was amputated 14 years ago. It sparked a legal nightmare</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-tells-somali-immigrants-to-return-home/de6078d7-1eb8-4c34-98f8-82db32af382b" target="_blank"><strong><span>Trump tells Somali migrants he doesn't want them in US</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Paterson said she has bought gift cards in the past but likely won't ever do it again.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I would say just give the person cash or put money in their bank account, because gift cards actually aren't as good as cash or money in their bank account because of the restrictions," Paterson told nine.com.au.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/gift-card-laws-australia-why-professor-of-consumer-law-will-never-buy-one/6c5d380f-20f1-47d5-94b1-5f9c67894725" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The laws around gift cards in Australia are enforced by the Australian Competition and Consumer Commission (ACCC).</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Since 2019, gift cards must be valid for at least three years from the date of purchase.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But there are some exceptions to the ACCC rule.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This includes cards that can be re-loaded, second-hand gift cards or vouchers with a discount offer.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The cost of gift cards also can't include "post-supply" fees such as activation, inactivity or balance inquiry fees.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Businesses can, however, charge fees for reissuing cards that have been lost, stolen or damaged.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Some retailers choose to have unlimited expiry, including Woolworths.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>These laws protecting consumers are also in place to protect the businesses, Paterson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There has to be a provision for the fact there's this financial liability to businesses," she explained.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"And the deal that's been struck in the economy is that they only need to hold that liability for three years."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/australias-most-trusted-distrusted-brands-revealed-bunnings-temu-big-banks-supermarkets/89b18750-26d7-461d-82bb-ffa86b0d06d5" target="_blank"><strong><span>Big movers in Australia's most trusted, distrusted brands</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Paterson said she doesn't believe this is a fair deal for consumers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I personally think it should be a bit longer," Paterson added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"You'd be much better off having that money in the bank."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Consumer comparison website Finder estimated in 2024 that Australians are sitting on </span><a href="https://www.9news.com.au/national/finance-missing-gift-cards-vouchers-money/17c523dd-9cb5-46ed-9f86-2b19c54a70a5" rel="" target="_blank" title="around $1.4 billion in unused gift cards."><span>around $1.4 billion in unused gift cards.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>They may be expired, lost or just forgotten about.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If you lose it, you probably have no rights. People perhaps don't realise that," Paterson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"People receive gift cards and they don't spend them or they don't spend them immediately or they lose them."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Retailers in particular are weathering tough trading conditions in Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/millers-noni-b-closure-mosaic-brands/2921fa17-f139-4a22-8d37-c63015f86b30" rel="" target="_blank" title="Plenty of chain stores have permanently closed or plan to soon"><span>Plenty of chain stores have permanently closed or plan to soon</span></a><span> – including the likes of Famous Footwear, Millers, Rivers and Katies.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If you are holding onto a gift card and the retailer folds, you technically lose that money.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under ACCC law, you might become an "unsecured creditor" but the odds of getting your gift card back in cash are unlikely.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's just part of a bundle of debts that might be owed and never paid off," Paterson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div>