Gift Card Non Expiry In Ontario

When do the new rules apply?
These changes came into effect October 1, 2007.

Will the rules apply to gift cards purchased before October 1, 2007?
No, the regulations only apply to gift cards bought on or after October 1, 2007.

Are the gift cards I sell covered by the law?
Pre-paid or re-loadable cash-equivalent gift cards or gift certificates are covered by the law. That means they cannot expire or have fees that erode the value of the card over time. Only fees to customize or replace a lost or stolen card or certificate will be allowed.

You must disclose all information clearly and prominently when the card is sold.

Gift cards redeemable at more than one unaffiliated store, such as shopping malls, must follow the rules relating to expiry dates and disclosures. As of September 1, 2008, mall gift card expiry dates have been banned and firm limits have been placed on administrative fees. When purchasing mall gift cards, consumers pay a maximum one-time activation fee of $1.50 and enjoy full value for these cards for up to 18 months, at which time a maximum dormancy fee of $2.50 per month kicks in.

Gift cards that are subject to federal jurisdiction, such as pre-paid phone cards, are not affected by this law.

If my cards have expiry dates or fees printed on them, do I have to print new ones?
You may use up leftover cards that still have expiry dates printed on them. If you do, that card cannot expire or have fees that erode its value. You must also give customers full disclosure about the card’s terms and conditions.

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.

Are the gift cards or gift certificates that I sell for specific goods or services affected?
No, the law does not apply to gift cards redeemable only for specific goods or services such as a manicure at a spa.

Does the law apply to gift cards that I give away for promotional purposes?
The law does not cover gift cards that are given away or sold at a discount.

Are gift cards that I give away to a charity subject to the law?
No, the law does not cover these cards. The government supports fundraising activities involving gift cards to support charities and non-profit organizations.

Are loyalty cards used to collect points covered by the law?
No, these types of cards are not covered because consumers earn the value accumulated on loyalty cards rather than buying them directly.

What happens if I charge an illegal fee?
You would be required to refund the fee to the consumer within 15 days after they request it either verbally or in writing.

What is the penalty for breaking the law?
The ministry will work with you to help resolve problems. However, if convicted of breaking the law, an individual can be fined up to $50,000 and/or jailed for up to two years. A corporation can be fined up to $250,000.

Where can I get more information?
Refer to section 25.3 –25.5 of the Consumer Protection Act.