Declaration of Policies
- Protect consumer interests and promote general welfare.
- Establish standards of conduct for business and industry.
- Encourage fair, honest, and equitable consumer transactions.
- Protect consumers from deceptive, unfair, and unconscionable sales practices.
- Value represented by gift checks is held in trust by issuers for beneficiaries.
- Consumers must not be deprived of the value loaded on gift checks.
- The Department of Trade and Industry (DTI) oversees these protections.
Scope
- The Act applies to all issuances of gift checks as defined by the law.
Definition of Terms
- Gift Check (or Gift Certificate/Gift Card): Instrument issued for monetary consideration, used at a single or affiliated merchant(s) for goods/services; can be paper, card, code, etc.; valid until issuer ceases business.
- Coupon or Voucher: Instrument issued for monetary consideration or otherwise, which entitles holder to a discount or exchange for a specific good/service.
- Issuer: Person or entity providing the instrument that holds value redeemable for goods/services.
Prohibitions
- It is unlawful to:
- Issue gift checks bearing an expiry date.
- Impose expiry on stored value, credit, or balance of gift checks.
- Refuse to honor unused value, credit, or balance stored in gift checks.
Exclusions
- Gift checks issued under loyalty, rewards, or promotional programs are excluded as determined by DTI.
- Coupons or vouchers as defined in the Act are also excluded.
Circumstances Where Gift Checks May be Refused
- Issuer or merchants may refuse honor when:
- Gift check is lost (no fault of issuer).
- Gift check is mutilated or defaced, preventing verification of authenticity.
- Issuers may set reasonable rules for changing, upgrading, or updating gift checks, subject to DTI approval.
- Such rules must avoid additional costs to consumers and comply with the Act.
Applicability to Related Consumer Programs
- Promotional sales, loyalty programs, warranties, return policies (for cash purchases), and discounts for senior citizens and persons with disabilities apply equally to purchases made with gift checks.
Transitional Provisions
- All gift checks issued before the effectivity of the Act are covered.
- Holders of unused and unexpired gift checks can avail replacements after revalidation at no extra cost.
Consumer Complaints
- Complaints regarding violations are to be handled under Chapter III, Title V of Republic Act No. 7394 (Consumer Act of the Philippines).
Penalties
- Violators must return unused gift check balance within 90 days after DTI violation declaration.
- Penalties include fines ranging from P500,000 to P1,000,000.
- Second offense additionally suspends gift check issuance for 3 months.
- Third offense leads to cancellation of gift check issuance rights.
Implementing Agency and Rules
- The DTI has exclusive jurisdiction for implementing the Act.
- DTI shall create rules and regulations within 90 days of the Act's effectivity after stakeholder consultation.
Repealing Clause
- Inconsistent laws, executive orders, rules, and regulations are repealed or amended accordingly.
Separability Clause
- If any provision or application is declared invalid or unconstitutional, the remainder of the Act remains unaffected.
Effectivity
- The Act takes effect 15 days after its publication in at least two newspapers of general circulation.