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.

Law Summary

Scope of the Guidelines

  • Applies to all entities engaged in issuing, distributing, or selling gift certificates/checks/cards, collectively referred to as "suppliers."

Definition of Gift Check/Certificate/Card

  • A gift check/certificate/card is a monetary instrument issued by a supplier.
  • It evidences a promise to exchange goods or services to the bearer up to the value or credit specified.
  • Does not cover gift instruments issued under awards, loyalty, or promotional programs.

Prohibition on Expiry Dates

  • From July 1, 2012, suppliers cannot issue or sell gift certificates/checks/cards with expiry dates.
  • Gift instruments without expiry are redeemable until the value is fully used by the bearer.

Grounds for Refusal to Honor Gift Checks/Certificates/Cards

  • Suppliers may refuse honor when:
    • The instrument is lost without supplier fault.
    • The instrument is mutilated or defaced without supplier fault, preventing verification of authenticity.

Application of Other Consumer Protection Provisions

  • Promotional sales, loyalty rewards, warranties, return policies, and discounts for senior citizens/persons with disabilities apply equally to transactions using gift instruments.

Transitional Provisions for Existing Gift Instruments

  • All gift instruments issued after effectivity must show date of issue and have a 2-year expiry.
  • Holders of unused/unexpired instruments post-June 30, 2012 are entitled to revalidation or replacement.
  • Instruments issued before effectivity with expiry beyond June 30, 2012 must be revalidated or replaced.
  • Terms and conditions of those with expiry within the period before effectivity remain honored.

Consumer Complaint Mechanism

  • Violations are subject to complaint procedures under RA 7394 and its Implementing Rules and Regulations.

Repeal of Inconsistent Rules

  • Any existing rules inconsistent with these guidelines are repealed or amended accordingly.

Separability Clause

  • Invalidity or unconstitutionality of any provision will not affect the validity of the rest of the Order.

Effectivity and Publication

  • The Order takes effect 15 days after publication in two newspapers with general circulation.
  • Copies sent to the National Administrative Register at the UP Law Center for record keeping.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.