Millers making customers spend more to use its gift cards

Maureen’s sister picked out two pairs of trousers and a shower cap that added up to the $50 amount, but when she went to use Maureen’s gift card to pay for them, she was told she’d need to spend an extra $50 to use the card. Shocked, she decided to leave the pants behind and went to tell Maureen.

The gift card still hasn’t been used, and Maureen says they’re both feeling ripped off by a brand they’ve supported for years.

“We’ve always bought off them, always gone to that shop. I was dumbfounded when she rang and told me what had happened,” Maureen says.

Millers is part of Mosaic Brands, the Australian parent company of other fashion brands, including Katies and EziBuy, that went into voluntary administration at the end of October. Millers stores are still open for now.

Maureen contacted Consumer NZ to ask what her rights were. Unfortunately, Millers can ask customers who want to redeem their gift cards to match the gift card amount with their own money while the company is in voluntary administration.

Leon Bowker, a partner at the accounting firm KPMG, has been appointed as one of the receivers of the New Zealand subsidiary of Mosaic Brands. He provided a statement that reads “Ordinarily, in accordance with the Companies Act 1993, the Receivers are not required to honour gift cards, as customers who hold gift cards are considered unsecured creditors in the event of an insolvency. However, in an effort to retain some value for Millers’ NZ customers, the Receivers will honour gift cards … on a dollar-for-dollar basis.

One News and The New Zealand Herald reported The Body Shop’s website, which has now been taken down, had also been telling gift card holders they had to match the amount to use them. The Body Shop stores are closing down after it went into voluntary administration last week.

Consumer NZ consumer advocate Aneleise Gawn said we called for changes to insolvency laws back in 2017. “Cabinet approved changes requiring insolvency practitioners to honour at least 50% of the value of the gift cards if a business continues to trade after being placed in receivership or liquidation, but these changes have not yet become law. We understand the changes are in the pipeline,” Aneleise said.

We checked in with the Ministry of Business, Innovation and Employment on this and were told the change is planned to be progressed alongside other improvements to insolvency law.

She said if gift cards had been bought with a credit card or debit card, it was worth asking your bank about a chargeback.

Maureen has decided to just give cash in the future. “I can’t get around the same anymore, so I give lots of vouchers for birthday presents, but you know, I’m thinking twice about buying them now,” she said.