New law prohibits expiry dates on gift checks
PRESIDENT Rodrigo R. Duterte has signed a law prohibiting the “issuance of a gift check that bears an expiry date” and “imposing an expiry date on the stored value, credit, or balance of the gift check.”
The Republic Act No. 109621, or An Act Regulating the Issuance, Use and Redemption of Gift Checks, was signed by Mr. Duterte last December 19 as shown in the copy released by Malacañang on Friday, Dec. 29.
The said law also prohibits issuers from “refusing to honor the unused value, credit, or balance stored in the instrument.”
“Holders of unused and unexpired gift checks shall, at no additional cost, be entitled to avail of replacement after revalidation by the issuers,” the Law said.
Section 11 of the Act also states that “Any person, natural or juridical, who violates the provisions (in the Law) shall be obligated to return the unused balance of the gift check within ninety (90) days from the declaration of the violation by the DTI (Department of Trade and Industry) and shall be subject to a fine to be imposed by the Secretary of Trade and Industry, which shall in no case be less than five hundred thousand pesos (P500,000) nor more than one million pesos (P1,000,000).”
For the second offense, in addition to the fine, the issuance of gift check by the offending issuer shall be suspended for three (3) months.
Meanwhile, for the third offense, in addition to the fine, the issuance of gift check by the offending issuer shall be cancelled.
The DTI, according to the said Act, shall have exclusive jurisdiction in its implementation.
As for exclusions, gift checks that are issued to consumers including, but not limited to, those under loyalty, rewards, or promotional programs, as determined by the DTI, are not covered by this Act. Coupons or vouchers are likewise not covered.
Section 15 of the Act states that it “shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.” Upon its affectivity, all gift checks already issued shall be covered by its provisions. — Arjay L. Balinbin
