On October 1, 2007, amendments to the Consumer Protection Act, 2002 and Ontario Regulation 17/05 that relate to the sale of gift cards came into effect.  The new regulations apply only to gift cards bought on or after October 1, 2007.  Across Ontario many retailers voluntarily eliminated expiry dates and fees on existing cards.

The amendments establish rules to protect consumers in Ontario who purchase or receive gift cards or gift certificates from stores and malls. The new consumer protection measures now being implemented include:

1. Prohibiting expiry dates on gift cards and certificates holding a specific dollar amount.

2. Restricting fees charged for gift cards to a) customizing a gift card, or b) replacing a lost or stolen gift card.

3. Requiring the clear and prominent disclosure of any items and conditions relating to a gift card (e.g., any limits to redeeming a card).

4. 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 (e.g., shopping mall cards) are temporarily exempt from the new rules while the ministry examines options to regulate these types of cards.

5. Gift cards for specific goods and services, such as a massage or manicure or dinner for two, are exempt from the law even if a dollar amount is specified on the card.

Most major Canadian retailers sell gift cards to their customers. Gift cards and other stored-value cards are one of the fastest-growing products in the marketplace today.

Ontario is the first Canadian jurisdiction to move to regulate gift cards. The restriction on fees will not apply to mall cards. This will allow more time to develop a workable solution with industry stakeholders that will ensure an informed decision that will best reflect the interests of consumers and business.


Retail Compliance in Ontario

Businesses in Ontario must make every effort to accurately notify consumers about the terms affecting gift cards, including prominent disclosure explaining expiry dates are not applicable to gift cards holding a specific dollar amount if they are purchased on or after October 1, 2007.

To date, compliance by retailers has been very good.  The majority of non-compliance is point of purchase/sale disclosures where the retailer is using up existing gift card stock. 

The Ministry has written to these few retailers about non-compliant cards, and has received responses indicating that they are moving quickly to comply – we will of course follow up on these cases.  The Ministry will continue to work with retail partners and continue its enforcement activities over the holiday period.

Contacts:
Greg Dennis
Minister’s Office
Office: 416-327-3072
Cell:   647-281-4403  

Ciaran Ganley
Communications Branch
416-325-8659