House bill removing expiration dates on GCs approved on final reading

The House of Representatives has approved on third and final reading a measure that bans the issuance or selling of gift checks, cards, and certificates with expiration dates.

The lawmakers approved House Bill 6016 or the "Gift Check Non-Expiry Act," which makes it illegal the issuance or sale of any gift check, certificate, or card with an expiry date.

Under the HB 6016, the terms “gift check, gift certificate, and “gift card” refer to instruments issued to an individual, partnership, or a juridical entity for monetary consideration honored at a single merchant or an affiliated group of merchants as payment for consumer goods or services provided by such merchant or affiliated group of merchants upon presentation of said gift check, gift certificate, and gift card to the extent of the value, credit, or balance stored in the instrument.

The proposed measure prohibits the imposition of an expiry date on the stored value, credit, or balance in the gift check, gift certificate and gift card.

It also mandates that the gift check, gift certificate and gift card shall remain valid until the cessation of business of the issuer.

Also under the bill, the gift check, gift certificate and gift card shall be sold at a discount of five percent from its face value by the juridical entity who issues or sells the gift check, gift certificate and gift card for which consumer goods or services will be exchanged.

The gift check, gift certificate, and gift card that is sold at a discount shall not be used for the purchase of groceries.

A gift check, certificate, and card that is issued to a consumer under an award, loyalty or promotional program is not covered under the bill.

Meanwhile, the bill also provides that an issuer may refuse to honor the gift check, gift certificate, and gift card if it is mutilated or defaced if the issuer is not at fault.

"Promotional sales activities, loyalty programs, warranties, return policies for cash purchase and discounts for senior citizens and persons with disability as provided under relevant laws and regulations shall apply likewise to purchase of goods and services that are paid for with gift check, gift certificate and gift card<' the measure states.

The measure imposes, upon conviction, the penalty of imprisonment of not less than one year but not more than five years and fine of not less than P500,000 but not more than P1 million, or both, upon the discretion of the court, to any person who violates the provisions of the act or its implementing rules and regulations. —Ted Cordero/ALG, GMA News