CONSUMERS are being urged to purchase gifts wisely as the Christmas shopping rush begins.
NSW Fair Trading Commissioner Rod Stowe said consumers traditionally stepped up their spending in the final weeks before Christmas.
It is also the time when retailers crank up their marketing and special offers, so consumers are being reminded to shop around, avoid impulse buying and read the fine print, particularly on gift cards and vouchers.
"Every year, Australians spend about $2.5 billion buying gift cards for their families and friends," Mr Stowe said.
"There is no denying the popularity of gift cards; they are often seen as a fail-safe choice offering flexibility for the recipient. However, consumers do need to pay careful attention to the terms and conditions, whether purchasing or redeeming a card."
Mr Stowe said gift cards can be a great choice, but can also be a waste of money and lead to disappointment if not used correctly.
"Some cards have set expiry dates, while others may limit what products or services a consumer can buy. Gift cards should be treated like cash because if they are lost, they can be very difficult to replace."
Mr Stowe said while some traders may extend the expiry date as a goodwill gesture, they are not legally obligated to do so.
NSW Fair Trading has received around 100 complaints about gift cards this year to date.
Card expiry is the number one complaint consumers make against gift cards. Other issues include non-receipt of cards or vouchers bought online and difficulties in redeeming.
Australian Consumer Law sets out avenues consumers have when they buy defective goods or services from a business. Mr Stowe said retailers also needed to ensure they operated in line with their obligations.
"Consumer legislation clearly conveys how and when a refund, repair or replacement is to be provided," he said.
"For example, 'no refunds' are unlawful because they imply it is not possible to get a refund under any circumstance, even when there is a major problem with the goods or service.
"It may come as a surprise to consumers to learn that retailers are not obliged to provide a refund if a consumer simply changes their mind about the purchase.
"Many do provide this facility as a goodwill gesture, however. Check the refund policy of the store before you make a purchase and hold on to receipts as you are likely to be asked for proof of purchase when returning goods."
If issues arise, Mr Stowe said shoppers should contact the retailer in the first instance. If further assistance is required, consumers can contact Fair Trading on 133-220 or lodge a complaint at www.fairtrading.nsw.gov.au
