Consumers take on risks when they use gift cards but the problems are not so serious that they warrant a regulatory response, a review has found.The Commonwealth Consumer Affairs Advisory Council issued its final report on the gift card market on Friday, with recommendations that the industry do more to increase consumer awareness about issues such as expiry dates, which have given rise to complaints. The CCAAC said the industry should develop and promote best practice principles that support consumers. It also recommended that industry participants conform to the ePayments Code.Last year, the Parliamentary Secretary to the Treasurer, David Bradbury, asked the CCAAC to identify the level of consumer detriment under current gift card arrangements. Bradbury said he was responding to a growing number of complaints. The most common consumer gripe is that different cards have different expiry dates. This causes confusion, which results in cards expiring before the holders have redeemed the value.Some gift cards have conditions that prevent them from being used to make small value purchases. And some cards have periodic fees that apply to the outstanding balance. These can erode the value of the card over time.Terms and conditions can change if the card issuer is insolvent. In one recent case the administrator required card-holders to spend an additional amount for every dollar redeemed.The CCAAC found that "on the whole, consumers benefit when giving and receiving gift cards."In its submission to the review, consumer lobbyist Choice said: "Nearly all gift cards sold in Australia expire after one year. This is grossly insufficient and leaves many consumers unfairly out of pocket without clear recourse."About three in four participants in the survey received at least one gift card in the past 12 months, with a similar proportion giving one as a gift. "More than half said they have had gift cards that expired before they were able to use the full value."The CCAAC had a different view. It said: "It would appear as though most gift cards are redeemed shortly after purchase, with most gift cards in the Australian market offered with an expiry period of at least 12 months. Many gift card issuers also offer grace periods."The Consumer Action Law Centre submitted: "Traders should be prohibited from placing expiry dates on gift cards. There is no reasonable justification for imposing expiry dates. "The rationale for expiry dates is that issuers face complexities in presenting unused gift card values in financial statements. We find this kind of reasoning wholly unconvincing. Unused gift cards are a windfall for traders."However, the CCAAC found "shorter expiry dates may be reasonably necessary to protect the legitimate commercial interests of some, mainly small, businesses."The Consumer Action Law Centre also called for the CCAAC to investigate the costs and benefits of establishing a compensation fund or other mechanism to protect gift-card holders when a trader that has issued them becomes insolvent.The CCAAC said insolvency risks for gift-card holders were "relatively low". It said: "While it is unfortunate that some consumers have experienced losses where