Consumer advocacy group Laban Konsyumer Inc. (LKI) has urged the Department of Trade and Industry (DTI) to strictly enforce the “no GC expiry” law as complaints of expiring gift checks, gift cards or gift certificates ensue around this Christmas season.
LKI President and convenor Atty. Victorio Mario Dimagiba noted on the rise of complaints on GCs with expiry dates by consumers.
“DTI should implement and enforce the rules and guidelines, as well as the word of law regarding the many misuses and abuses of gift checks, as it is stated that those who do not comply and violate should be penalized. The violating parties should return the unused value of GCs with expiry dates within 90 days of the violation and there will be succeeding and applicable fines,” he said.
“We ask government to protect consumer welfare by making sure that all establishments follow these rules strictly, especially given the circumstances of the pandemic where consumers have hard very hard time going out and using the GCs.”
LKI also reminded all traders and consumers that gift checks, gift certificates or gift cards or GCs should have no expiry dates printed on them.
Dimagiba cited that this is expressly provided in Section 5 of Republic Act No. 10962 or the Gift Check Act of 2017. The updating, upgrading or changing of GCs do not authorize the issuers to affix an expiry date.
When the GCs shows an expiry date, he said, these GCs are issued to customers under a loyalty, rewards or promotional programs as provided in Section 6 of the law. “The misuses and abuses of the said GCs with expiry date proliferates in the market because said GCs do not bear in prints the approval and permit number of the loyalty, rewards or promotional programs granted by the DTI. This is a circumvention of the absolute prohibition of the Gift Check Act as well as Sec. 2 Rule II of DTI DAO 19-03 Series of 2019,” he said.
Based on Republic Act. 10962, an Act regulating the issuance, the use and redemption of gift checks it is clearly stated in Sec 5 as prohibition that the following acts should be and shall be unlawful, and included in this is issuing a gift check that bears an expiry date. The law imposed a hefty fines of P500,000.00 to P1, 000,000.00.
Meantime, DTI Undersecretary for Consumer Welfare and Protection Group explained that “GCs should have no expiration date if it is bought for value, meaning the GC was bought by a customer and paid for with money or other material with value. If it was freely given by the shop without any consideration it can expire, but if bought it cannot and should not.”
He said that GCs with expiry date does not necessarily mean they are under promo activities or given freely by the business owner. Thus, she said, that all GCs with expiry date must be clearly explained why the expiry date.
“The presumption is that all GCs are bought for value so no expiration. If it shows an expiry date, they need to prove that it is issued out by the business owner. It's illegal to put an expiry date if these GCs are bought for value and not freely coming from the business establishment,” she concluded.