PENNY Mordaunt has called for better consumer protection for gift card holders following a number of high-profile retail collapses.
The Portsmouth North MP led a debate in Westminster Hall.
She said that, in the event of a company administration, gift card holders should not be classed as creditors at all – that gift cards should be seen as a pre-payment for goods.
Responding to Ms Mordaunt, consumer minister Jo Swinson MP looked for an industry-led answer, ahead of the upcoming debates on the Consumer Rights Bill.
She cited the already-used e-money regulated products like the Post Office One4all Gift Card, and an industry-led code of practice as possible solutions.
Michael Dawson, CEO of multi-retailer gift card provider Post Office One4all, said: ‘Regulated products bring clear benefits to consumers, giving them the reassurance that they won’t be left out of pocket in the event of a retailer collapsing.
‘In a sector that is worth over £4.5bn, we want to encourage the industry to move to a higher standard of protection for consumers and strengthen consumer confidence in the sector.’