Title
Guidelines on Gift Checks and Certificates
Law
Dti Department Administrative Order No. 10-04
Decision Date
Jun 25, 2010
The Department Administrative Order No. 10-04, s. 2010 prohibits the issuance or sale of gift certificates/checks/cards with expiry dates in the Philippines, ensuring that all gift checks/certificates/cards are redeemable until fully used by the bearer.

Questions (DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 10-04)

It is issued pursuant to Title X, Book IV of the Administrative Code of 1987 and specifically Article 52 (Chapter 1, Title III) of Republic Act No. 7394 (Consumer Act of the Philippines). It invokes the State policy to protect consumers’ interests, promote their general welfare, establish standards of conduct in business, and protect consumers against deceptive, unfair, and unconscionable sales acts and practices.

They are instruments issued by a supplier for monetary consideration evidencing a promise by the issuer that consumer goods or services will be exchanged in favor of the bearer upon presentation, to the value/credit/specific good/service/event shown in the instrument.

No. Gift certificates/checks/cards distributed by the supplier to consumers under an award, loyalty, or promotional program are explicitly not covered.

Beginning July 1, 2012, it is prohibited for any supplier to issue and/or sell gift certificate/check/card that contains expiry dates.

They are redeemable until used up by the bearer.

A supplier may refuse to honor when (a) the instrument is lost due to no fault of the supplier, or (b) the instrument is mutilated/defaced due to no fault of the supplier and the damage prevents identification of the instrument’s security and authenticity features.

Yes. The DA Order states these consumer-related rules and privileges apply likewise to purchases of goods and services paid for using gift certificate/check/card.

It prevents suppliers from discriminating against gift-card purchasers and ensures that benefits available for cash purchases (including statutory senior citizen/PWD discounts and warranty/return policies where applicable) must also extend to gift-card transactions.

They are entitled to replacement after revalidation by the suppliers.

Complaints are subject to the provisions of Republic Act No. 7394 (Consumer Act) and its Implementing Rules and Regulations.

Yes. Section 8 provides a repealing clause: all rules and regulations or parts thereof inconsistent with the DA Order are repealed or amended accordingly.

If any provision is declared unconstitutional or invalid, the validity of the remaining provisions shall not be affected.

It takes effect fifteen (15) days after its publication in two (2) newspapers of general circulation, and three (3) copies are sent to the National Administrative Register at the University of the Philippines Law Center.


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