Gift Check Act of 2017

The State shall protect the interests of the consumer, promote the general welfare, and establish standards of conduct for business and industry (Section 2).
The State shall promote fair, honest, and equitable relations in consumer transactions and protect consumers against deceptive, unfair, and unconscionable sales acts and practices (Section 2).
The best interest of the consumer shall be considered in the interpretation and implementation of the Act and its implementing rules and regulations (Section 2).
The DTI shall recognize that a gift check represents value held in trust by the issuer on behalf of its beneficiary or bearer, and consumers must not be unduly deprived of the value of their money (Section 2).

The Act applies to all issues of gift checks as defined under Section 4(a) (Section 3).
A gift check is an instrument issued for monetary consideration, honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services (Section 4(a)).
A gift check may be in the form of paper, card, code, or other device, and remains valid until the cessation of business of the issuer (Section 4(a)).
A coupon or voucher is an instrument issued 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(b)).
An issuer is any person, natural or juridical, who provides the instrument that holds value for exchanged consumer goods or services (Section 4(c)).

Gift checks issued to consumers under loyalty, rewards, or promotional programs, as determined by the DTI, are not covered by the Act (Section 6).
Coupons or vouchers as defined under Section 4(b) are not covered by the Act (Section 6).

Issuers shall not issue a gift check that bears an expiry date (Section 5(a)).
Issuers shall not impose an expiry date on the stored value, credit, or balance of the gift check (Section 5(b)).
Issuers shall not refuse to honor the unused value, credit, or balance stored in the instrument (Section 5(c)).

The issuer and its accredited merchants may refuse to honor gift checks if the gift check is lost due to no fault of the issuer (Section 7(a)).
The issuer and its accredited merchants may refuse to honor gift checks if 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(b)).
Issuers may prescribe reasonable rules for changing, upgrading, or updating gift checks, subject to DTI approval (Section 7).
Issuers’ rules for changing, upgrading, or updating the gift checks shall not impose additional cost to the consumer (Section 7).
Issuers’ rules for changing, upgrading, or updating the gift checks shall not violate the Act (Section 7).

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 and regulations shall apply likewise to purchases paid for with gift checks (Section 8).

Upon the effectivity of the Act, all gift checks already issued shall be covered by its provisions (Section 9).
Holders of unused and unexpired gift checks shall be entitled to replacement after revalidation by issuers, at no additional cost (Section 9).

Complaints for any violation of the Act shall be made in accordance with Chapter III, Title V of Republic Act No. 7394 (Consumer Act of the Philippines) (Section 10).

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

The DTI shall have exclusive jurisdiction in implementing the Act (Section 12).
The DTI shall promulgate the rules and regulations necessary to effectively implement the Act within ninety (90) days from the effectivity of the Act (Section 12).
The DTI shall promulgate these rules and regulations after due consultation with appropriate stakeholders (Section 12).

All laws, executive orders, rules and regulations, or parts thereof inconsistent with the Act are repealed or amended accordingly (Section 13).
If any article or provision, or any portion of it, or its application to any person, group, or circumstance is declared invalid or unconstitutional, the remainder of the Act shall remain effective (Section 14).
The Act reflects a consolidation of Senate Bill No. 1466 and House Bill No. 6016, and was finally passed by the Senate on October 11, 2017 and by the House of Representatives on October 10, 2017.