Question & AnswerQ&A (Republic Act No. 10962)
The short title of Republic Act No. 10962 is the "Gift Check Act of 2017."
The primary policy is to protect the interests of the consumer, promote general welfare, establish standards for business conduct, encourage fair and equitable relations in consumer transactions, and protect consumers from deceptive and unfair sales practices.
A Gift Check, also called Gift Certificate or Gift Card, is any instrument issued for monetary consideration, honored at a single merchant or affiliated merchants as payment for consumer goods or services, and may be in paper, card, code or other devices, remaining valid until the issuer ceases business.
No, coupons or vouchers as defined under Section 4(b) are not covered by this Act.
The prohibited acts include: issuing a gift check with an expiry date; imposing an expiry date on the stored value or balance; and refusing to honor the unused value, credit, or balance stored in the instrument.
Violators must return the unused balance within 90 days from the DTI's violation declaration and pay a fine from ₱500,000 to ₱1,000,000. For a second offense, gift check issuance is suspended for 3 months, and for a third offense, issuance is cancelled in addition to the fine.
The Department of Trade and Industry (DTI) has exclusive jurisdiction over the implementation of the Act.
Discounts for senior citizens and persons with disabilities provided under relevant laws also apply to purchases paid for with gift checks as stated in Section 8.
The Act takes effect fifteen (15) days after publication in at least two newspapers of general circulation.