Gift vouchers are popular, especially when you do not know what kind of present to buy. These vouchers are specifically purchased as gifts and people receiving them can buy whatever they want. However, gift vouchers are still different to cash. Even though it is the receiver of the voucher who chooses his/her own gift, these vouchers can only be used to buy goods or services from the shop or retail chain from which they were bought.
Whoever buys these vouchers should note the terms and conditions they carry. Some have no strings attached and can be used anytime, on any products, and if a product of a lesser value is chosen, another voucher is issued with the difference in price.
Having said that, one needs to keep in mind that gift vouchers are not cash. They represent goods to the face value of the voucher. Therefore, traders do not need to give change if goods of a lesser value are chosen, unless the voucher specifically says so.
Gift vouchers may have an expiry date, and if they do the trader has no obligation to accept it beyond this date. Hence, vouchers should not be left too long in a wallet or under a magnet on the fridge. Besides risking ending up with an outdated voucher, there is also the possibility that the owner of a business could change and this could lead to the unused vouchers becoming worthless.
The new owners would only be bound to honour them if they had purchased the previous owner's liabilities, but this does not happen very often. It is also possible that the trader may run out of business and this could also mean that unused vouchers become useless.
If the gift voucher is close to its expiry date and you have still not used it, check with the shop or trader whether the time period could be extended. They are under no legal obligation to do so, but they may do this out of goodwill. If they won't, then you know you have only a short period of time left during which to use it.
Consumers must also be careful not to lose the gift voucher because if this happens, there is not much one can do. The only exception would be if the gift voucher is in the name of the consumer and is marked 'not transferable'. This means the trader is likely to have a record of the voucher and may be prepared to cancel the original and issue another.
As gift vouchers cannot be exchanged for cash, even unwanted gifts cannot be returned to the shop and automatically refunded. It is a common misconception that people have a right to return goods. This right does not exist legally. Regardless of whether the good is purchased or received as a gift, if it is not faulty, legally, no refund policy or exchange applies.
Ms Vella is senior information officer, Consumer and Competition Division.