Things to know
- With limited exceptions, gift cards cannot have an expiration date, and consumers cannot be charged
usage, dormancy or other fees.
- Key exceptions to the prohibition on expiration dates include gift cards issued for promotional
purposes (e.g., the consumer did not pay for the gift card), or issued for a specific good or service.
- Any restrictions, limitations and conditions must be printed on the card.
- Some provinces require the issuer to provide a cash refund of an unused balance on the gift card in certain circumstances.
- The term “gift card” is defined broadly in provincial consumer-protection legislation, and includes physical and electronic gift cards, certificates, vouchers, and other devices.
- Certain provinces also regulate points earned pursuant to loyalty programs, and also impose
limitations on the ability of the issuer to expire the reward points.
- The term “points” is defined broadly to prevent circumvention of the legislation.
- Similar to the gift card legislation, there are certain exceptions from the prohibition on the expiration of points, including points issued for a specific good or service.
- Ontario’s legislation requires an issuer to re-instate points that expired between October 1, 2016 and January 1, 2018, subject to certain conditions.
Things to do
- Ensure that you fully disclose any permissible usage limitations and fees to the consumer
prior to purchase.
- Ensure that your gift card provides all disclosure required by the gift-card legislation.
- Refrain from having your gift card expire unless an exemption applies.
- Re-instate points that were expired in contravention of the legislation.
Canada Company Registration
Company Formations Canada offers fast and easy company registration in Canada for non-Canadian residents and foreign companies wishing to operate and do business in Canada.
Register a new company in Canada as a non-Canadian resident
Register a foreign company in Canada
Canada Registered agent services for foreign companies and non-Canadian residents.
Canada Nominee director services for foreign companies and non-Canadian residents.
Shared from: Osler, Hoskin & Harcourt llp Publication