ACCC probes Catch gift cards amid April closure deadline
The ACCC is looking into a decision by Wesfarmers to only give Catch gift card holders until April 30 to use their remaining balances.
The Australian Competition and Consumer Commission (ACCC) has confirmed it will be contacting Wesfarmers about the legal arrangements surrounding the closure of Catch and its treatment of gift card holders.
Wesfarmers announced the closure of the popular e-commerce website on Tuesday, citing operating losses and stiff competition from overseas retailers.
In an email seen by SmartCompany, Catch customers were informed that gift card holders had until April 30, 2025, to redeem their balances – the same date the Catch.com.au site will shut down.
“We will cease selling gift cards on 21 January, 2025. Existing gift cards can be redeemed until catch.com.au is closed on 30 April 2025,” the email read.
SmartCompany can confirm that Catch has ceased selling gift cards.
Is the Catch gift card expiry legal?
Under Australian consumer law, gift cards purchased after November 1, 2019, must remain valid for a minimum of three years unless certain exceptions apply.
There are exceptions to this, such as when a company becomes insolvent. In this case, the consumer becomes an ‘unsecured creditor’ of the company.
Things are less clear when it comes to businesses shutting their doors. The ACCC’s website simply says that a closure could affect a consumer’s ability to use their gift cards.
“Businesses may temporarily close or restrict their trading for an extended period and this may impact the use of gift cards. However, if, in these circumstances, the gift card can’t be used because of a restriction the business placed on its use, the business should provide some form of remedy,” the ACCC website states.
Adding to the complexity, at the time of writing Wesfarmers has not opted to allow Catch gift cards to be redeemed at other brands in its portfolio, such as Kmart or Target Australia – despite Catch’s fulfilment centres and other resources being transferred to the Kmart Group.
Speaking exclusively to SmartCompany, the ACCC confirmed it hasn’t been privy to the Catch gift card arrangements but that it will be looking into it.
“The ACCC is not aware of the specific legal arrangements involved in Wesfarmers’ closure of Catch.com.au,” an ACCC spokesperson said.
“The ACCC will be in contact with Wesfarmers and Catch.com.au to understand this.”
For now, Catch gift card holders have been encouraged by the company to use their balances as soon as possible. If gift cards cannot be redeemed before April 30, it’s unclear whether consumers will have recourse to lodge complaints with the ACCC.
SmartCompany contacted Wesfarmers for comment but did not respond in time for publication.
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