QuestionsQuestions (Republic Act No. 10962)
The short title is the “Gift Check Act of 2017.”
To protect consumers’ interests, promote fair and equitable relations in consumer transactions, and ensure consumers are not unduly deprived of the value of their money, recognizing that a gift check represents value held in trust by the issuer for the beneficiary or bearer.
It applies to all issues of gift checks as defined under Section 4(a) of the Act.
Any instrument issued for monetary consideration, honored upon presentation at a single merchant or affiliated group of merchants as payment for consumer goods or services. It may be paper, card, code, or other device, and remains valid until the cessation of business of the issuer.
A coupon/voucher entitles the holder to a discount off a particular good or service, or may be exchanged for a pre-identified good/service. Coupons/vouchers are excluded from coverage under RA 10962.
It is unlawful to: (a) issue a gift check bearing an expiry date; (b) impose an expiry date on the stored value/credit/balance; or (c) refuse to honor the unused value/credit/balance stored in the instrument.
Gift checks issued to consumers under loyalty, rewards, or promotional programs are not covered if determined by the DTI. Coupons or vouchers are also not covered.
Yes. Purchases paid with gift checks should be treated likewise for promotional sales activities, loyalty programs, warranties, return policies for cash purchases, and discounts for senior citizens and persons with disability as provided by relevant laws and rules.
The Department of Trade and Industry (DTI) has exclusive jurisdiction. It must promulgate the implementing rules and regulations within ninety (90) days from the effectivity of the Act.
Complaints must be made in accordance with Chapter III, Title V of Republic Act No. 7394 (Consumer Act of the Philippines).
The offender must return the unused balance within 90 days from DTI’s declaration of violation and face a fine from P500,000 to P1,000,000. For the second offense, issuance of gift checks by the offending issuer is suspended for three (3) months in addition to the fine; for the third offense, issuance is cancelled in addition to the fine.
Fifteen (15) days after its publication in at least two (2) newspapers of general circulation.