Guidelines on Gift Checks and Certificates

The Order is issued pursuant to Title X, Book IV of the Administrative Code of 1987.
The Order is issued pursuant to Chapter 1, Title III, particularly Article 52 of Republic Act No. 7394.
The policy declared in Republic Act No. 7394 includes protecting consumer interests, promoting general welfare, and establishing standards of conduct for business and industry (Article 2).
Republic Act No. 7394, Article 3 requires that the best interest of the consumer be considered in interpreting and implementing its provisions, including implementing rules and regulations.
Republic Act No. 7394, Article 48 requires the State to promote fair and honest relations among parties in consumer transactions and protect consumers against deceptive, unfair, and unconscionable sales acts and practices.

Section 1 applies the Order to all issuers, distributors, and sellers of gift certificate/check/card, referred to as “suppliers.”
Section 2 defines “Gift Check/Certificate/Card” as an instrument issued by a supplier to an individual, partnership, or juridical entity for monetary consideration.
Section 2 provides that the instrument evidences a promise that consumer goods or services will be exchanged in favor of the bearer upon presentation to the value, credit, specific good, service, or event shown in the instrument.
Section 2 excludes from coverage gift checks/certificates/cards distributed by the supplier to consumers under an award, loyalty or promotional program.

Section 3 imposes a prohibition commencing July 1, 2012: suppliers may not issue and/or sell gift certificate/check/card containing expiry dates.
Section 3 provides that gift checks/certificates/cards with no expiry dates must be redeemable until used up by the bearer.

Section 4 allows suppliers to refuse to honor gift certificates/checks/cards only under these circumstances:
- (a) When the gift certificate/check/card is lost due to no fault of the supplier; or
- (b) When the gift certificate/check/card is mutilated or defaced due to no fault of the supplier and the damage prevents identification of the security and authenticity features.
Section 4 limits refusals to the enumerated circumstances stated in the provision.

Section 5 requires that promotional sales activities, loyalty programs, warranties, return policies for cash purchases, and discounts for senior citizens/persons with disability provided under relevant laws and rules and regulations apply to purchases paid with gift certificate/check/card.
Section 5 expressly extends those programs and consumer rules to purchases of goods and services paid using gift certificates/checks/cards.

Section 6 requires that, upon the effectivity of the Order, all gift checks/certificates/cards issued must bear a date of issue and an expiry of 2 years, subject to the succeeding paragraph.
Section 6 provides that holders of unused and unexpired gift checks/certificates/cards after June 30, 2012 are entitled to replacement after revalidation by suppliers.
Section 6 requires honoring the terms and conditions of unused gift checks/certificates/cards issued before the effectivity of the Order.
Section 6 provides that gift checks/certificates/cards issued before the effectivity of the Order that bear expiry dates beyond June 30, 2012 are subject to revalidation or replacement.

Section 7 provides that complaints for violations of the Order are governed by Republic Act No. 7394 (the Consumer Act of the Philippines) and its Implementing Rules and Regulations.

Section 8 repeals or amends all rules and regulations, or parts of rules and regulations, inconsistent with DTI Administrative Order No. 10-04.
Section 9 provides a separability rule: if any provision is declared unconstitutional or invalid, the validity of the other provisions is not affected.