Most consumers have either bought or received a gift card in the past few years, but did you know that expiry dates and other fees can reduce or wipe-out the value of these card over time?
On October 1, 2007, the Consumer Protection Act will ban expiry dates and most fees on gift cards purchased after that date to make sure you get their full value, regardless of when you use them. Make sure you know your rights before you buy.
Gift cards are very popular with consumers and businesses. But many of them expire a year or two after purchased or include fees that reduce the actual value of the card. Some of these fees include:
- Activation fees: Some businesses force you to pay an added service fee to purchase the card or use it for the first time.
- Dormancy fees: These fees are deducted from the unused balance of your card, until it is empty.
On October 1, 2007, expiry dates and fees will be banned on retail gift cards except for fees to customize a gift card or replace one that has been lost or stolen.
Gift cards redeemable at more than one unaffiliated store are temporarily exempt from rules on fees, but must follow the rules relating to expiry dates and disclosures. The ministry is working with stakeholders to determine the best way to regulate these cards and expects to make a decision by summer 2008.
The new law will not apply to loyalty cards used to collect rewards or points, and will not apply to cards that are subject to federal jurisdiction, such as prepaid phone cards. Cards or certificates that are redeemable for specific services, such as a massage at a spa, will also not be covered.
When the changes come into force on October 1, 2007, they will affect only gift cards purchased on or after that date. It is important to read and understand the terms and conditions of each gift card before you buy.
Consumer Beware: Gift card scams
Gift card FAQ
Information for retailers
