Frequently Asked Questions
What’s the purpose of the new law?
The goal is to ensure you get what you paid for by being able to redeem the full value of a gift card at any time. In addition to prohibiting expiry dates and restricting fees, the new law also ensures consumers receive prominent disclosure of terms that affect their cards.
When do the new rules apply?
These changes came into effect October 1, 2007.
Are all gift cards covered by the law?
The rules apply to pre-paid and re-loadable gift cards and gift certificates sold by retailers. Gift cards redeemable at more than one unaffiliated store, such as shopping malls, must follow the rules relating to expiry dates and disclosures, but are temporarily exempt from the rules on fees while the ministry examines options to regulate these types of cards.
Will the rules apply to previously purchased gift cards?
No, the regulations only apply to gift cards bought on or after October 1, 2007. But, many businesses have voluntarily eliminated expiry dates and fees on existing cards, so it’s worth asking the retailer if you’re in doubt.
How do I know when the card I received was purchased?
You can ask the person who gave you the card or check the information on the back. Some cards also come with more information that may tell you when it was bought. If this doesn’t help, contact the store where it was purchased.
Can a store still sell a gift card with an expiry date printed on it after October 1, 2007?
Some stores may choose to use up leftover cards that still have expiry dates printed on them. If they do, cards purchased on or after October 1, 2007 cannot expire or have fees that take away from their dollar value and stores must ensure you receive proper disclosures.
What are the disclosure requirements?
Any relevant information affecting the use of gift cards must be provided to consumers in writing in a way that is clear, comprehensible and prominent.
How do these changes affect gift cards or gift certificates for specific goods or services?
The law does not apply to gift cards redeemable only for specific goods or services such as a manicure at a spa. Retailers should not be required to maintain the same price on a specific good or service indefinitely.
Does the law apply to gift cards given away for promotional purposes?
A gift card that is given away or sold to consumers at a discount is not covered by the new law.
Are gift cards purchased from a charity subject to the law?
No, these types of gift cards are not covered by the law. The government supports fundraising activities involving gift cards to support local charities and non-profit organizations.
Are loyalty cards used to collect points considered a gift card?
No, these types of cards are not covered because you earn the value accumulated on loyalty cards rather than buying the card directly.
Will the new law apply to pre-paid phone cards?
No. Expiry date rules do not apply to phone cards because they are under federal jurisdiction. However, companies that provide phone cards must still disclose the card’s terms and conditions in a way that is clear and comprehensible to consumers.
What can I do if I did not get the proper information?
You can return the card and get a refund of the amount remaining on the card within 15 days.
What can I do if I was charged an illegal fee?
You can demand a refund of the fee by giving oral or written notice to the retailer and can expect the refund within 15 days.
What is the penalty for violating the law?
The ministry will work with businesses to resolve problems. However, if convicted of breaking the law, individuals can be fined up to $50,000 and/or jailed for up to two years. Corporations can be fined up to $250,000.
Where can I get more information?
Contact the Consumer Protection Branch.
