NSW Purchasing Gift Cards from People - Legal Issues?

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DK1

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30 June 2015
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If I buy a gift card from someone and it turns out that they had obtained the gift card fraudulently (fraud):

  1. Will the gift card and/or goods I purchased with the gift card be taken away from me?
  2. Might I get into any legal trouble as well?
  3. If I pass the goods to others and they do the same will the last holder of the goods have the goods taken from them? Will anyone ever involved along the way also be in any legal trouble?
I am worried that someone might just decide to chargeback their credit card they used to purchase a gift card. I want to know if it might affect anyone who received/purchased the gift cards / items.
 

Tim W

Lawyer
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28 April 2014
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Have you done this yet?
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
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Sydney
In theory, the store retains the right to refuse to deal in a card.
  • Some cards have a "not transferable" condition in the T&Cs; and/or
  • If the store is not satisfied of the validity of the card; and/or
  • Sometimes there is a blanket condition on the card that they can refuse to accept it for any reason
    (you don't see this often but it is out there).
So, what could go wrong for you?
  • You buy a stolen card (that's called "receiving"); and/or
  • You are found to be in possession of a stolen card
    (such as when the police turn out your pockets and find it); and/or
  • You pay good money for a card that isn't activated, has been cancelled,
    or has actually zero value on it; and/or
  • You get phished when you try to use it.
All in all, there is pretty good consumer protection around "legitimate" cards.
And plenty of opportunity to buy them, on promo, at below face value
from legitimate sellers.
The only way you can buy a second hand card at below face value
is if the seller bought it for even less.
And if you don't smell a rat there...
 
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