UK consumers are set to lose out on millions of pounds through unspent gift cards because of a lack of protection following Brexit.

The warning has been given by SNP MP Patricia Gibson, who says the gift card industry is already “pickpocketing” consumers on a massive scale.

The UK gift card industry is worth £6 billion but £300m is unspent every year – often because consumers are caught out by tight expiry dates.

The EU is on the verge of acting on the issue, meaning that post-Brexit consumers will be left with less protection than those in the rest of Europe, according to Gibson.

The US already has a blanket minimum five-year expiry date for gift cards enshrined in federal laws, with Ireland set to follow suit.

Now Gibson is calling on the UK to bring in a minimum expiration period of five years to protect consumers.

In a letter to UK Business Minister Kelly Tolhurst, Gibson said: “The gift card industry is worth £6bn, with £300m left unspent each year. This is pickpocketing on a massive scale and regulation of expiry dates is now essential if UK consumers are to enjoy the same protection as our European neighbours post-Brexit.”

“More transparency around expiry dates on gift cards is essential. Expiry dates vary and are unclear, which leaves consumers out of pocket, with unspent vouchers being clawed back as profit by retailers.

“The EU is set to act on this issue which means after Brexit, consumers in the UK will enjoy less protection than their European counterparts unless the UK government urgently moves to regulate this industry.

“If the UK government fails to act, we will see a divergence in consumer protection between the UK and EU citizens, which the UK government has assured us would not occur.

“It is important that, at the very least, a minimum five-year expiry date across the board is introduced to protect consumers.”

Gibson has raised the issue with the Department for Business, Energy and Industrial Strategy but was told: “Companies are free to offer whatever contractual terms and conditions they wish for their products and services, including the validity of prepaid gift vouchers or cards.”

Gibson said while some cards may be lost, other consumers were finding they had expired when they wanted to use them. She said there was a lack of clarity around expiration dates, despite provisions of the UK Consumer Rights Act 2015.

The Department for Business, Energy and Industrial Strategy spokesperson said: “It’s inherently unfair for consumers to spend money on gift cards, only to be locked into restrictive conditions or impractical expiry dates.

“That’s why we continue to work closely with the gift card and voucher industry to improve transparency and simplicity around expiry dates, as well as encouraging retailers to make two year expiry periods the norm.”