We got a tip off from a journalist earlier today - JB Hi-Fi are restricting the use of gift cards for people who are pre-ordering the new PlayStation console.
JB’s gift card terms and conditions are pretty simple and broadly fair: https://www.jbhifi.com.au/pages/gift-card-terms-conditions But they don’t say anything about JB being able to restrict what you can buy with a gift card or restrict purchases for major promotions like the PS console.
Here’s a possible spin: They are not changing the conditions of the gift card, they are rationing the sale and availability of a specific product where demand exceeds supply.
It’s a pity that JB Hi-Fi don’t speak up and explain their position.
Only ones that are going out of business, so is JB HiFi trading insolvent or going into administration? This is the conclusion I would likely draw if they refused my gift cards. Maybe lots of others should also be thinking it as such but of course this is only speculation based on prior defaults by companies on gift cards such as Dick Smiths and may not reflect JB HiFi’s trading status at all. They may also just want to test the strength of the ACL and the resolve of the ACCC. They wouldn’t put themselves at risk of a fine or worse for breaching the ACL would they? Mind you the fines generally handed out are paltry in comparison to the offences.
The lesson to be learnt is that Gift Cards are not worth the plastic they are printed on, we are better off keeping our cash in our wallet or account and paying by that means all the time. Maybe it is time to refuse Gift Cards because most tie us to a business and don’t offer any freedom to spend where we would like. If the business goes bust you basically forfeit the money that was spent to buy the card…so it isn’t like cash because if we had cash we get the items or we don’t hand over the money (unless we purchased on backorder).
It sounds like JB Hifi may have accepted more preorders then they can fill, and are using the retrospective condition to try and reduce the expected demand on the product’s release and arrival.
Purchased gift cards should be treated no different to cash. The money is in JB Hifi’s bank pending a customer purchase
What’s stopping ‘The Govt’ legislating any of the following?
gift cards holders are secured creditors,
the value of a gift card is protected by compulsory insurance,
gift card funds are held in a secured govt run trust account.
I can hear businesses screaming if a politician would dare to take any of the options to the floor, and their fellow inmates of the political system rolling around the floor laughing as said member respectfully resigns.
I keep reminding myself there are few consumer protections for gift cards and in general they cannot be redeemed for cash. A lottery ticket may be a more secure investment in our household?
I also remember that when they first became popular the business providing them got to steal your credit (keep your cash) if you did not use them by a certain date. And that was OK by the government of the day.
Buyer beware relates well to decisions beyond just consumer goods and credit?
Many gift cards, JBHiFi included can often be purchased at discounts of 5-10%. It could be so simple as they are not going to discount even one new game console by accepting a potentially discounted gift card.
They also may have some lawyers advising a legal gambit that exposes them to far more liability via the ACCC than the equivalent discount on any number of consoles.
We have an employer ‘deals’ scheme that allows this with JB along with other retailers like Woolies etc.
Essentially, if they don’t want to discount stuff, they shouldn’t be in the scheme - the responsibility for their margin is theirs, not something that should be deflected to unscrupulous and shady conditions that are foisted unannounced on the consumer.
What’s stopping ‘The Govt’ legislating any of the following?
gift cards holders are secured creditors,
the value of a gift card is protected by compulsory insurance,
gift card funds are held in a secured govt run trust account.
Love those ideas - we made some similar recommendations to government after the last big gift card scandal from Dick Smith. The system is very easily rorted - it would be much better for consumers to have the certainty that they can use the money they’ve handed over.
So that more or less supersedes all the discussion in this topic in a practical sense.
Or even just prioritize the demand. I think even people who steadfastly pay with a Gift Card would eventually get their console, they would just lose their spot in the queue.
Which raises the question as to whether this would have been legal if it had been a documented condition that customers had (implicitly) agreed to.
Interestingly the Terms and Conditions specifically say:
All Gift Cards sold at JB Hi-Fi or at third party locations do not expire. Gift Cards can be redeemed at any time even if a Gift Card specifies an expiry date. This excludes Ultimate Kids Gift Cards and Ultimate Teens Gift Cards, which will be subject to the expiry date stated on those cards.
