Soco: Law prohibiting expiry of GCs ‘logical and practical’

CEBU, Philippines — Enacting House Bill No. 6016 into law is a welcome move as it is a logical and practical piece of legislation as it basically protects the consumers, said Mandaue Chamber of Commerce and Industry (MCCI) president Glenn Soco.

HB 6016, otherwise known as the ‘Gift Check Non-Expiry Act’, was passed on third and final reading via a unanimous vote last week. It seeks to regulate the issuance, use and redemption of gift checks, gift cards and gift certificates.

The bill makes it unlawful for any issuer to issue or sell a gift check, gift certificate and card gift that contains an expiry date.

"Most gift checks are presumed pre-paid so there is no need for an expiry date,” Soco said.

He added that they welcome this proposed policy as businesses will have to make the necessary adjustments with their systems in issuing gift checks.  

"This would also enhance moneyless transactions, which we foresee will evolve into an e-transaction in the near future," Soco added.

The bill is aligned with the government’s thrust to protect the interest of the consumer, promote the general welfare and establish standards of conduct for business and industry.

Consistent with this policy, the State shall promote and encourage fair, honest, and equitable relations among parties in consumer transactions and protect consumers against deceptive, unfair and unconscionable sales acts and practices.

To achieve this purpose, the State, through the Department of Trade and Industry recognizes that a gift check or gift certificate represents value held in trust by the issuer thereof on behalf of its beneficiary or bearer and as such, consumers must not be unduly deprived of the value of their money.

"Money does not expire unless it is already demonetized, which rarely happens. So the same must apply to a gift certificate, check or card,” said Quezon City Second District Representative Winston Castelo, the principal author of the bill in a statement.

The statement added that a gift check shall remain valid until the cessation of business of the issuer. Gift check shall be sold at a discount of five percent from its face value by the juridical entity who issues or sells the same for which consumer goods or services will be exchanged. But gift certificates sold at a discount shall not be used for the purchase of groceries.

Moreover, gift checks or certificates issued to a consumer under an award, loyalty or promotional program are not covered under the bill.

An issuer may refuse to honor the gift certificates that are mutilated or defaced due to no fault of the issuer.

Another instance an issuer may refuse to honor the same is when it is lost due to no fault of the issuer as well.

The bill states 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 certificate or gift card.

All gift certificates already issued but still unused shall be covered by the provisions of the law once it takes effect.           

 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 this Act or its implementing rules and regulations. (BANAT NEWS)