Question & AnswerQ&A (Republic Act No. 10962)
The short title is the "Gift Check Act of 2017."
The Act aims to protect the interests of consumers, promote general welfare, and establish standards of conduct for business regarding gift checks, ensuring fairness and protection against deceptive or unfair sales practices.
A 'Gift Check' is any instrument issued to any person, natural or juridical, for monetary consideration, which is honored upon presentation at a single merchant or affiliated merchants as payment for consumer goods or services. It may be in the form of paper, card, code, or other devices and remains valid until the issuer ceases business.
Gift checks issued under loyalty, rewards, or promotional programs as determined by the DTI, and coupons or vouchers entitling holders to discounts or exchange for specific goods or services, are excluded from coverage.
Issuing gift checks that bear an expiry date, imposing expiry dates on the stored value or balance, and refusing to honor the unused value or balance are unlawful under this Act.
Violators must return the unused balance within 90 days from the DTI declaration of violation and face fines ranging from P500,000 to P1,000,000. A second offense results in a 3-month suspension of gift check issuance, and a third offense leads to cancellation of the issuance right.
The Department of Trade and Industry (DTI) has exclusive jurisdiction over the implementation, including promulgation of necessary rules and regulations.
Complaints are to be made in accordance with the provisions of Chapter III, Title V of Republic Act No. 7394, the Consumer Act of the Philippines.