Re: New Gift Card Rules In Effect On October 1, 2007
On October 1, 2007 amendments to the Consumer Protection Act, 2002 and Ontario Regulation 17/05 that relate to the sale of gift cards will come into effect. The amendments establish rules to protect consumers in Ontario who purchase or receive gift cards or gift certificates from retailers.
The new consumer protection measures being implemented include:
1. Expiry dates on gift cards will be prohibited. Businesses must ensure that gift cards issued on or after October 1st do not include an expiry date. Businesses may use any existing inventory of cards containing expiry dates as long as clear and prominent disclosure that the expiry dates are not enforceable is provided to consumers.
2. Up front fees for gift cards are prohibited. Shopping mall gift cards that can be used at multiple retailers are temporarily excluded from the fee restrictions, pending further study. In all other instances, however, fees may be charged for:
a. customizing a gift card
b. replacing a lost or stolen gift card.
3. Disclosure of any terms and conditions relating to a gift card (e.g., any limits to redeeming a card) must be clear, comprehensible and prominent.
Businesses subject to the law are required to take steps to meet these restrictions and requirements by October 1, 2007.
The Ministry will begin monitoring compliance with the revised rules on gift cards promptly, and detected problems or complaints will be raised with businesses quickly. Compliance action may be taken against those found in violation of the Act or its regulations. If convicted, individuals can face fines of up to $ 50,000 or imprisonment for a term of not more than two years less a day, or both. Corporations are liable to fines up to $ 250,000.
For accurate and detailed information, reference should be made to the Act and its regulations for complete requirements. A copy of these is available on the Government of Ontario’s e-Laws Web site at www.e-laws.gov.on.ca.
The following is a direct link to the Consumer Protection Act, 2002:
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_02c30_e.htm
Below is a link to the applicable regulations:
http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_050017_e.htm
If you have any questions about obligations under the new gift card rules, please contact us at:
Ministry of Government Services
Consumer Protection Branch
5775 Yonge St, 15th Floor
Toronto, ON M7A 2E5
Tel: (416) 326-8800
Toll free: 1-800-889-9768
Fax: (416) 326-8665
e-mail: Info.MGS@ontario.ca
