TORONTO – The McGuinty government is moving to ban expiry dates on consumer gift cards, Minister of Government Services Gerry Phillips said today at the Toronto Eaton Centre.
 
“Retail gift cards have become widely popular and the consumers of this province deserve to get what they pay for,” said Phillips. “That’s why our government is acting by introducing legislation that, if passed, will allow us to regulate the elimination of expiry dates, and the terms and conditions for these cards, ensuring they retain their full value no matter when consumers redeem them.”

Gift cards and other stored value cards are a multi-billion dollar industry and one of the fastest growing products in the marketplace today. Virtually all major retailers now offer some form of gift card, with most containing an expiry date of about two years. Some retailers also apply fees to the cards, reducing their value after a certain length of time.

“We are delighted to see that Ontario intends to eliminate expiry dates on gift cards. More and more consumers are purchasing gift cards and we are pleased that Ontario is proactively leading the way to protect consumers,” said Consumers Council of Canada President Bill Huzar.

New regulations will be developed to ensure that gift cards purchased by consumers in Ontario would not expire. The regulations would also put strict limits on any related fees and ensure that all terms and conditions are disclosed at the time of purchase.

“We look forward to working with the government to create rules that respond to the concerns of consumers but also take into consideration the legitimate needs of retailers. I am sure a balance can be found,” said Diane J. Brisebois, President and CEO, Retail Council of Canada.

The proposed changes would apply to gift cards and certificates, but not to loyalty cards, discount coupons or promotional/charitable gift cards.

“We hope this legislation will pass quickly so that we can begin working with the retail industry to develop and implement the new regulations as soon as possible,” said Phillips.

Ensuring retail gift cards and certificates retain their full value is one way the McGuinty government is protecting Ontario consumers. Other recent measures include:

• Proposed legislation for this fall that, if passed, will enhance existing protection for Ontario families from real estate fraud
• New regulations that ban threatening language and limit the number of phone calls collection agencies can make
• Creation of the Consumer Beware List, an online database listing businesses with unresolved complaints and convictions.

Backgrounder - Information on retail gift cards

Contacts:
Paul de Zara
Minister’s Office
416-327-3072 - office
647-388-9671 - cell 

Ciaran Ganley
Ministry of Government Services
416-325-8659