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Posted on
30 November 2010

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'Tis The Season Of Giving

Written by  Michelle

'Tis The Season Of Giving Source: Microsoft Office

Can you believe it’s December already?  The holiday season is upon us and stores are beginning to look cheerful and festive. I always feel a bit overwhelmed going to crowded shopping malls and battling the parking lot warzone.

If you are a last minute shopper like me, prepaid purchase cards (aka gift cards) can be a lifesaver for those difficult to buy for people. In fact, a survey done by Maritz Research Canada says that more and more Canadians say they are choosing to purchase gift cards (49% in 2010 over 45% in 2009).  They also make great stocking stuffers. How could you go wrong?

Keep in mind, gift cards sometimes have restrictions or fees. You will want to make sure the person you are giving the card to is made aware of any terms and conditions that apply. By law, gift cards for a dollar value are not allowed to have expiry dates. However gift cards bought for a specific good or service are allowed to have expiry dates.

Here’s an example:

  • $50 gift card for your mom spend at the spa: expiry date not allowed
  • Gift card to the same spa for a manicure: expiry date allowed

 

One more thing that’s important to know is that cash cards from major credit card companies such as VISA, MasterCard and American Express do not fall within the legislation and therefore can have expiry dates even if they are for a monetary value. This also goes for telephone calling cards so always check for expiry dates before you buy them.

For more tips and information about gift cards in BC, visit this page on our website.

Hope this has been helpful and happy shopping!

Last modified on 05 January 2011
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Michelle

Michelle

Michelle works in the Consumer Protection BC Inquiry Centre.  She answers calls and emails from consumers and businesses on a wide variety of topics which makes her the perfect person to share her knowledge and experiences with you.

Comments  

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Eunice Min

09 May 2011
We have a client in retail business. They sell and redeem gift cards. Is there a rule for businesses regarding writing off old gift cards that were sold before Nov. 2008 and not redeemed?
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Michelle

10 May 2011
Hi Eunice,

Thanks for the question. The gift card legislation does not cover cards sold prior to November 1st 2008. Therefore the answer would be no, there are no "rules" for businesses that regulate writing off old gift cards.

Hope that helps,
Michelle
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Dave M

30 May 2011
I purchased a groupon certificate for a 2 night hotel stay in a Victoria Resort and Spa for the stay and massage that has an expiry date of June 20th. We are unable to use the $299 certificate and the supplier says they will not extend the expiry date or refund.

Any thoughts of whether I am being treated fairly?
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Tatiana

31 May 2011
Hi Dave. Thanks for posting a comment. I'm sorry to say that this is up to the business to set their own policies around this. If your Groupon has expired, the right thing to do was to contact the supplier to see if they could assist you in any way. You could try to contact Groupon itself but it sounds like in this case, it was up to the business to determine whether they wanted to extend the date or provide a refund.

With any coupon like this, we always encourage consumers to check the expiry date and make sure they can use it prior to that date. We know that things happen sometimes though!
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fern vanderklok

27 June 2011
we are having the same problem with a whistler package Nita Lake Lodge and they just said there was nothing left and we should of called earlier. first come first served! doesn't seem like that should be legal. Is it???
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Tatiana

04 July 2011
Hi Fern, thank you for your comment. Are you referring to a Groupon or a general gift card? You may wish to contact Groupon directly as they may be able to help you. If it wasn't a Groupon, please give us a call at 1-888-564-9963. We will get more details from you and do our best to help you!
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Kevin Caldwell

12 August 2011
We have a $150 Sears Club Rewards Card that we have just discovered has an Expiry Date in tiny letters on the back. Is having expiry date on this type of card that was "purchased" with points OK?

Thanks.
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Michelle

15 August 2011
Hi Kevin,

The restriction of expiry dates on monetary gift cards does not apply to products of a "promotional nature". Because this is a rewards card that was purchased with points, it would be considered one of a promotional nature and an expiry is allowed. I hope this helps!
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Margaret

03 October 2011
Can you please clarify whether the rules regarding gift cards apply to companies such as Groupon, Ethical Deal, etc that offer online coupons for purchase. That is, if a voucher of that sort expires before it is used, is the expiry lawful, and can the buyer obtain a refund of at least the cash value they paid for it?

Thanks.
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Tatiana

05 October 2011
Hi Margaret,
Thank you for your question. Expiry dates are allowed for gift cards/coupons that are of a promotional nature.

We actually did an interview on this very topic that you can check out here: http://bit.ly/oZW9SO

You may also wish to contact Groupon directly if you have questions of them.

I hope this helps!
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Norm

29 October 2011
I have a convenience card with a local coffee shop that in the past I
have "refilled". Recently the owner of the shop has decided to sit down
with me and demand I agree with his political views. Finally his
actions have become enough that I have decided to not patronize his
place. I instructed him to stop badgering me and he refused, he has
also refused to refund the balance on my card. Is he required to refund
the card when he has made dealing with him so unpleasant that after
warning him I refuse to patronize his shop. I regard his actions as a
willful attempt to drive me out of his place of business after I had just
refilled the card. Unfortunately the card is only usable in his place
of business.
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Michelle

31 October 2011
Hi Norm,

Thanks for your question. This sounds like a very frustrating situation! Unfortunately the situation you have described is not regulated under the gift card laws. To answer your question, no, there are no laws which require the shop owner to refund the balance outstanding on the card.

Hope this helps to clarify things,
Michelle
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Ashley Z

01 November 2011
Hi Michelle,

I have a question about the prepaid portion of a discounted voucher (in my case Groupon and LivingSocial are the companies). In BC law am I still entitled to the prepaid portion of my voucher after it's expired? One is for a $20 food and drink voucher at a restaurant that I paid $10 for. It's expired, but can I still use the voucher there and it be worth $10 (what I actually paid for it)?

Thanks,
Ashley
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Tatiana

01 November 2011
Hi Ashley, thanks for posting. We actually responded to a very similar question above on October 5th. The gift card law in BC doesn't address this area so there is nothing in the law that says that you are entitled to the portion you paid.

You can call the business to ask them about their policy, and perhaps Groupon or LivingSocial as well.

We always encourage people to think about whether or not they can use the coupon by the expiry date before purchasing it. That may actually be a good future blog post for us!

Thanks,
Tatiana
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Nick

18 February 2012
Hey, my girlfriend bought me some clothes at a West 49 store in the mall and got a $20.00 money card with it. She gave me the card but it said only valid between January 1st-31st 2012. I didn't realize the expiry date until now. Is this allowed?
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Michelle

20 February 2012
Hi Nick, thanks for the question. If your girlfriend received the money card as a "reward" for her purchase, this card may have an expiry date even if it is for a monetary value. Cards that are sold or provided for less than face value are considered promotional and therefore may have expiry dates. Check out our information page about gift cards for more info! Here's the link: http://bit.ly/dB64yZ.
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Glenda

05 March 2012
Hi Michelle,
I'm just wondering if a store credit that was given in place of a refund is allowed to have an expiry date? I can't figure out if these fall into the category of 'store policy' or 'gift cards & their associated regulations'.

Thanks.
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Michelle

06 March 2012
Hi Glenda, great question! Store credits do not fall under the same regulations as gift cards. Store credits may have expiry dates and fall under the business' policies. Hope that helps!
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hana

07 March 2012
If I have a small amount of money left on a card (eg $2.50 or even 25 cents) am I able to get that in cash, or am I forced to spend that small amount of money there?

thank you.
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Michelle

08 March 2012
Hi Hana, there is no legislation that speaks to the situation you are describing. Therefore the decision on what to do with the remainder of cash is up to store policy. It's been my experience that I am expected to spend it. Hope this has been useful!
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Barry

12 March 2012
I have two cards valued at $10 for a small local shop. I recently purchased items for a total cost of about $10.90. The clerk told me that I could only use one card per transaction, so I put the balance on my credit card.

To me, non-promotional gift cards are a credit note with the shop, and so they shouldn't be able to limit how many you can use per transaction - in this case the practice employed seems like an excellent way to bilk me out of another $.90 even though I have more than enough credit at the shop to cover the cost.

Is this practice allowable? I think they should honour all gift cards presented at the time of the transaction, not just one.
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Michelle

13 March 2012
Hi Barry, I've personally never come across that problem before. This situation is not regulated by legislation and therefore stores do have the right to create their own terms and conditions regarding gift card usage. Thanks for your question!
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Raymond

07 April 2012
I have received a gift certificate for a restaurant in BC with an expiry date. It does not specify the type of meal that it can be applied to and it also specifies a dollar value on the certificate. Does this satisfy the "specific good or service" requirement or is this not legal? Thanks!
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Tatiana

10 April 2012
Hi Raymond, if you got the gift certificate after November 2008 and it has a dollar value attached to it, then it sounds like it should not have an expiry date. Feel free to give us a call at 1-888-564-9963 to confirm that though.
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Cee

26 April 2012
Hi, I purchased a 10 class (all-class) punch card for a yoga studio which expired out before I had a chance to use them all. Is this permitted?
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Michelle

26 April 2012
Hi Cee, because the punch cards are for a specific good or service, expiry dates are permitted.
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