Regulating Gift Checks Issuance and Use

Section 2 declares State policy to protect consumer interests, promote the general welfare, and establish standards of conduct for business and industry.
Section 2 requires the promotion of fair, honest, and equitable relations among parties in consumer transactions.
Section 2 directs protection of consumers against deceptive, unfair, and unconscionable sales acts and practices.
Section 2 mandates that the best interest of the consumer be considered in interpreting and implementing the Act, including its implementing rules and regulations.
Section 2 recognizes a gift check as value held in trust by the issuer on behalf of its beneficiary or bearer, and requires that consumers not be unduly deprived of the value of their money.

Section 3 applies all issues of gift check as defined under Section 4(a).
Section 4(a) defines a Gift Check (also referred to as Gift Certificate or Gift Card) as an instrument:
- issued to any person, natural or juridical, for monetary consideration; and
- honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services.
Section 4(a) states that a gift check may be in the form of paper, card, code, or other device, and it remains valid until the cessation of business of the issuer.
Section 4(b) defines a Coupon or Voucher as an instrument issued to any person, natural or juridical, for monetary consideration or otherwise, that:
- entitles the holder to a discount off a particular good or service, or
- may be exchanged for a pre-identified good or service specified on the instrument.
Section 4(c) defines Issuer as any person, natural or juridical, who provides the instrument that holds value for which consumer goods or services will be exchanged.

Section 6 excludes gift checks issued to consumers under loyalty, rewards, or promotional programs, as determined by the DTI.
Section 6 excludes coupons or vouchers as defined under Section 4(b).

Section 5(a) prohibits issuing a gift check that bears an expiry date.
Section 5(b) prohibits imposing an expiry date on the stored value, credit, or balance of the gift check.
Section 5(c) prohibits refusing to honor the unused value, credit, or balance stored in the instrument.

Section 7(a) allows the issuer and its accredited merchants to refuse to honor a gift check when it is lost due to no fault of the issuer.
Section 7(b) allows refusal when the gift check is mutilated or defaced due to no fault of the issuer and the damage prevents identification of the gift check’s security and authenticity features.
Section 7 also allows the issuer to prescribe reasonable rules for changing, upgrading, or updating the gift check, provided that:
- DTI approval is obtained;
- the rules do not impose additional cost to the consumer; and
- the rules do not violate the Act.

Section 8 requires promotional sales activities, loyalty programs, warranties, return policies for cash purchases, and discounts for senior citizens and persons with disability under relevant laws and rules and regulations to apply likewise to purchases paid for with gift checks.

Section 9 provides that upon the Act’s effectivity, all gift checks already issued are covered by the Act’s provisions.
Section 9 entitles holders of unused and unexpired gift checks to replacement after revalidation by the issuers.
Section 9 requires replacement to be provided at no additional cost to the holder.

Section 10 provides that complaints for any violation of the Act must be made under Chapter III, Title V of Republic Act No. 7394 (Consumer Act of the Philippines).

Section 11 requires that any person, natural or juridical, who violates the Act must return the unused balance of the gift check within ninety (90) days from the declaration of the violation by the DTI.
Section 11 imposes a fine by the Secretary of Trade and Industry that must be not less than PHP 500,000 and not more than PHP 1,000,000.
Section 11 provides that for the second offense, in addition to the fine, the issuance of gift checks by the offending issuer is suspended for three (3) months.
Section 11 provides that for the third offense, in addition to the fine, the issuance of gift checks by the offending issuer is cancelled.

Section 12 grants the DTI exclusive jurisdiction to implement the Act.
Section 12 requires the DTI, after due consultation with appropriate stakeholders, to promulgate rules and regulations within ninety (90) days from the Act’s effectivity.

Section 13 repeals or amends laws, executive orders, rules and regulations, or parts thereof that are inconsistent with Republic Act No. 10962.
Section 14 provides separability: if any article, provision, portion, or its application is declared invalid or unconstitutional, the remainder of the Act remains effective.