Dear PAO,
When I was decluttering my things, I found in my drawer the gift certificates that I received as a gift almost a year ago. Do gift certificates expire?
Imo
Dear Imo,
Republic Act 10962, otherwise known as the “Gift Check Act of 2017,” which was signed into law on Dec. 19, 2017, regulates the issuance, use, and redemption of gift checks/ gift certificates/ gift cards (“GCs”). It was issued in pursuit of the policy of the State to protect the interests of the consumer, promote the general welfare, and establish standards of conduct for business and industry. It likewise protects consumers against deceptive, unfair, and unconscionable sales acts and practices. Toward this end, the State recognizes that a gift check represents value held in trust by the issuer thereof on behalf of its beneficiary or bearer, and that consumers must not be unduly deprived of the value of their money.
Accordingly, GCs do not expire, pursuant to the aforesaid law. Pertinent provisions thereof provide as follows:
“Sec. 4. Definition of Terms. – As referred to in this Act, Gift Check, also referred to as Gift Certificate or Gift Card, is any instrument issued to any person, natural or juridical, for monetary consideration, honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services. The instrument may be in the form of paper, card, code, or other device, and shall remain valid until the cessation of business of the issuer.
“Sec. 5. Prohibitions. – The following acts shall be unlawful: Issuing a gift check that bears an expiry date; Imposing an expiry date on the stored value, credit, or balance of the gift check; or Refusing to honor the unused value, credit, or balance stored in the instrument. (Emphasis and underscoring supplied) x x x
“Sec. 7. Instances Where Issuers and Accredited Merchants May Refuse to Honor Gift Checks. – The issuer and its accredited merchants may refuse to honor gift checks under the following circumstances: When the gift check is lost due to no fault of the issuer; or When the gift check is mutilated or defaced due to no fault of the issuer and such damage prevents the issuer from identifying the security and authenticity features thereof.”
In accordance with the foregoing, your GCs do not have expiration dates; thus, you may still use them, except in the above-cited instances where issuers and accredited merchants may refuse to honor GCs.
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]
