QuestionsQuestions (PSA ADMINISTRATIVE ORDER NO. 1 SERIES OF 2016)
RA 10962 is the “Gift Check Act of 2017.” It regulates the issuance, use, and redemption of gift checks to protect consumer interests, promote fair business practices, and prevent consumers from being unduly deprived of the value of money.
A Gift Check (also called gift certificate or gift card) is any instrument issued for monetary consideration, honored upon presentation at a single merchant or affiliated merchants as payment for consumer goods or services. It may be in paper, card, code, or other device.
A Coupon or Voucher is an instrument that entitles the holder to a discount off a particular good or service, or can be exchanged for a pre-identified good or service specified on the instrument. Unlike a gift check, it is not an instrument held as value for payment of goods/services broadly under the gift check definition.
It is unlawful to (a) issue a gift check with an expiry date, (b) impose an expiry date on stored value/credit/balance, or (c) refuse to honor the unused value/credit/balance stored in the instrument.
No. Section 5(a) and 5(b) prohibit issuing gift checks that bear expiry dates and imposing expiry dates on the stored value/credit/balance.
Gift checks issued under loyalty, rewards, or promotional programs (as determined by DTI) are not covered. Also, coupons or vouchers (Section 4(b)) are likewise not covered. Practically, not every prepaid-looking discount instrument falls under RA 10962.
Promotional sales activities, loyalty programs, warranties, return policies for cash purchases, and discounts for senior citizens and persons with disability—provided under relevant laws and rules—apply likewise to purchases paid for with gift checks.
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 violator must return the unused balance within ninety (90) days from the DTI’s declaration of the violation and pay a fine of not less than P500,000 nor more than P1,000,000. For the second offense, issuance is suspended for three (3) months in addition to the fine. For the third offense, issuance is cancelled in addition to the fine.
The Act takes effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.