Justice and Public Safety Minister Doug W. Currie is reminding Islanders that Gift Card legislation to prohibit expiry dates and restrict fees on most gift cards comes into effect September 1, 2010.
“Government is committed to protecting the financial interests of Island consumers,” says Minister Currie. “With gift card purchases growing in popularity, this new legislation will help ensure that consumers get what they have paid for and that the value of their gift card is not reduced or eliminated through fees or expiry dates.”
The Gift Cards Act applies to any gift card issued on or after September 1, 2010. The Act prohibits expiry dates and administrative fees on most gift cards and requires clear disclosure of all fees and other terms and conditions. The new legislation applies to gift cards, gift certificates or any other voucher sold with a monetary value attached.
Some gift cards are exempt. Charitable gift cards and marketing and promotional cards may have both an expiry date and an administration fee. Gift cards for the cost of a specific good or service, such as a manicure or round of golf, may have an expiry date. Phone cards, pre-paid bank cards and credit card branded gift cards are not covered by the new Act. These cards fall under Federal Government jurisdiction.
“This new legislation is important for Island consumers because it protects the value of their purchase and calls for clear disclosure, in writing, of any restrictions, limitations, terms or conditions when the gift card is issued,” says Minister Currie.
The Gift Cards Act was passed during the spring session of the legislature and was given an effective date of September 1 to allow retailers sufficient time to update their systems in order to become compliant, yet still ensure that consumers will be protected during the busy holiday shopping season.