Daniel Gritzer

Welcome to our comprehensive guide on understanding the legalities of gift cards in Canada. Gift cards have become increasingly popular in recent years, but many consumers may not be aware of the legal regulations surrounding their use. In this guide, we will provide you with all the information you need to know about gift card laws in Canada, including their expiry dates, fees, and consumer protections. Whether you’re a gift card purchaser or recipient, this guide will help you navigate the legal landscape and make informed decisions.

What are the legal requirements for gift cards in Canada?

In Canada, gift cards must have an expiration date of at least two years from the date of purchase, and any fees associated with the card must be clearly disclosed to the consumer.

Are there any restrictions on the types of stores that can issue gift cards?

No, any store can issue gift cards in Canada, as long as they comply with the legal requirements.

Can gift cards expire before the two-year minimum?

No, gift cards cannot legally expire before the two-year minimum in Canada.

What should consumers do if they encounter an expired or invalid gift card?

Consumers should contact the issuer of the gift card and request a replacement or refund.

Can gift cards be refunded for cash?

In most cases, no.

Can gift cards be sold or transferred to another person?

Yes, gift cards can be sold or transferred to another person unless the terms and conditions of the card prohibit it.

Are there any tax implications for gift cards?

Gift cards are generally not taxable for the recipient.

After reading through this comprehensive guide on the legalities of gift cards in Canada, many users have reported feeling more confident and knowledgeable about their rights as consumers. They appreciate the clear explanations and examples provided, which have helped them navigate the complex regulations surrounding gift cards. Some have even shared that they have been able to save money and avoid potential scams by following the advice outlined in the guide. Overall, this resource has been highly valued by those seeking to better understand their legal rights and responsibilities when it comes to gift cards in Canada.

The author has waived all copyright and related or neighboring rights to Consumer Protection Law Ontario 01 July Right of Civil Action. Special Credit Card Remedies. Anyone considering using the CPA should first carefully sort out which of its rules apply to their situation. Overview a Gift Cards Defined Gift cards, commonly known as gift certificates are nothing more than what have been for years called vouchers. They operate as proof to a retailer that prepayment in a fixed amount has been made to them. Gift cards can either be designated to a specific holder by name, in which case only that holder can redeem them – or transferrable and simply redeemable by the holder or bearer , whoever that is. Typically they are transferrable as suppliers want to encourage consumers to purchase many and distribute them freely to family and friends. Gift cards are sometimes redeemable with retailers other than those from which they were purchased, in which case the retailer and the issuer will engage in collateral financial transfers amongst themselves to balance out accounts. The following key definitions are required to understand how gift cards are regulated under the CPA CP Reg 23 Gift Card gift card means a voucher in any form, including an electronic credit or written certificate, that is issued by a supplier under a gift card agreement and that the holder is entitled to apply towards purchasing goods or services covered by the voucher Gift Card Agreement gift card agreement means a future performance agreement under which the supplier issues a gift card to the consumer and in respect of which the consumer makes payment in full when entering into the agreement. As such all gift cards are also future performance agreements as those agreements are governed by the rules set out in Part C, Ch. As gift cards both heavily rely on the future performance agreement rules, and have some express exemptions from them, readers dealing with a gift card situation should review that section as well as this chapter. Restrictive Terms All restrictions, limitations and conditions that the supplier imposes on the use of the gift card. Expiry Dates Not Binding It is typical that gift cards and gift card agreements provide for an expiry date after which the gift card is not redeemable. Inclusion of an expiry date under CPA law is prohibited. Further, if one is included with or on a gift card then they are ineffective in law, and the gift card shall be effective as if it has no expiry date CP Reg Allowed and Prohibited charges a Overview This section addresses what extra charges ie. Preliminary to this explanation is the distinction between regular and open loop gift cards. A regular gift card is redeemable only by the supplier it was purchased from and its branches or affiliates. On the other hand is an open-loop gift card, which has a broader redeemability CP Reg 23 open loop gift card agreement means a gift card agreement that entitles the holder of a gift card to apply it towards purchasing goods or services from multiple unaffiliated sellers. With the following two exceptions, no extra charges may be made with respect to a regular gift card ie. With the following three exceptions, no extra charges may be made with respect to open loop gift cards ie. The card has a notice on the back of the card setting out, clearly and prominently, the time limit and fee information listed above. By that means or any other, this information must be disclosed to the consumer at the time that they enter into the goft card agreement. General requirements for CPA disclosure are explained at this link General Disclosure Requirements d Illegal Charge Remedies If the consumer who bought the card or the holder of an open-loop gift card is charged an illegal charge by either the card supplier of the goods or services seller, then they have the right within one year after the charge to demand it be refunded by the supplier. The supplier has 15 days to make the refund CP Reg Consumer-issued demand aka notice procedures are discussed in Part C, Ch. While – technically – recovery of illegal charges that are not refunded is available by way of the civil courts it is unlikely that most cases would warrant use of that procedure for the small amounts typically involved. See s. Remedies a Overview In addition to the common law law remedies of tort, contract and restitution discussed in Part A, CPA civil court remedies fall into three categories general, sector-specific ie. Non-compliance with any of the general consumer rights see Part C, Ch. These are summarized in b below. However some sector-specific rights have their own remedial procedures discussed in 4 d above. Any unfair practice provisions which deal primarily with false, misleading or deceptive and unconscionable representations which may have specific relevance to gift cards are set out in d below. Overview This is a summary of the general civil remedies available to consumers under the CPA.