Effective October 1, 2007 expiry dates on dollar-value gift cards are prohibited, according to regulation 187/07 under the Consumer Protection Act.
What is covered by the law
Pre-paid or re-loadable cash-equivalent gift cards or gift certificates are covered by the law. That means they cannot expire or have fees that erode the value of the card over time. Only fees to customize or replace a lost or stolen card or certificate will be allowed.
You must disclose all information clearly and prominently when the card is sold.
Gift cards redeemable at more than one unaffiliated store, such as shopping malls, must follow the rules relating to expiry dates and disclosures. As of September 1, 2008, mall gift card expiry dates have been banned and firm limits have been placed on administrative fees. When purchasing mall gift cards, consumers pay a maximum one-time activation fee of $1.50 and enjoy full value for these cards for up to 18 months, at which time a maximum dormancy fee of $2.50 per month kicks in. Gift cards that are subject to federal jurisdiction, such as pre-paid phone cards, are not affected by this law.
You may use up leftover cards that still have expiry dates printed on them. If you do, that card cannot expire or have fees that erode its value. You must also give customers full disclosure about the card’s terms and conditions. Disclosure requirements requires any relevant information affecting the use of gift cards must be provided to consumers in writing in a way that is clear, comprehensible and prominent.
What is not covered by the law:
Gift cards redeemable only for specific goods or services such as a manicure at a spa. Gift cards that are given away or sold at a discount. This includes gift cards thar are given away to a charity. The government supports fundraising activities involving gift cards to support charities and non-profit organizations. Loyalty cards used to collect points are also not covered because consumers earn the value accumulated on loyalty cards rather than buying them directly.
More Information:
What happens if I charge an illegal fee? You would be required to refund the fee to the consumer within 15 days after they request it either verbally or in writing.
What is the penalty for breaking the law? The ministry will work with you to help resolve problems. However, if convicted of breaking the law, an individual can be fined up to $50,000 and/or jailed for up to two years. A corporation can be fined up to $250,000.
For more information on Gift Cards: