| Ontario removes gift-card expiry dates |
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(Jun. 1/07) Ontario will no longer allow expiry dates and fees on gift cards, effective Oct. 1, 2007. The decision follows months of consultation with industry stakeholders, including CRFA.
CRFA recommended that expiry dates be permitted for gift cards for a specific service whose value may change in the future – such as accommodation or dinner packages – and/or where no financial transaction was completed. These recommendations were adopted as part of the government’s regulations, and will apply only to gift cards bought on or after Oct. 1, 2007.
What you need to know:
- Operators may use up leftover cards that still have expiry dates printed on them, but all cards purchased on or after Oct. 1, 2007 cannot expire or have any fees that diminish the card’s dollar value.
- Operators must provide proper disclosure, meaning that all relevant information affecting the use of gift cards must be “clear, comprehensible and prominent.”
- While activation and dormancy fees will not be permitted under the regulation, fees associated with customizing a card and/or replacement fees to reissue a lost card are allowed.
CRFA encourages all foodservice operators to ensure they are complying with these changes to the Consumer Protection Act. A copy of the regulation can be found here.
For frequently asked questions about these new regulations, click here.
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