Welcome to our guide on Know Your Rights Understanding Ontario’s Consumer Protection Act for Gift Card Purchases . In today’s world, gift cards have become one of the most popular gift options, especially during the holiday season. However, it’s important to know your rights as a consumer when purchasing gift cards to protect yourself from fraud, expiry dates, and other potential issues. In this article, we’ll discuss the key points of the Consumer Protection Act in Ontario and provide you with the necessary information to make informed gift card purchases.
What is the Consumer Protection Act for Gift Card Purchases?
The Consumer Protection Act for Gift Card Purchases is a set of laws that protect consumers in Ontario when they purchase gift cards.
What are my rights as a consumer under the Act?
As a consumer, you have the right to be informed about the terms and conditions of the gift card, including its expiry date and any fees associated with its use.
Can gift cards expire under the Act?
Yes, gift cards can expire under the Act, but the expiry date must be clearly stated on the card or in writing provided to the consumer at the time of purchase.
Are there any fees associated with gift cards under the Act?
Yes, there may be fees associated with gift cards, such as activation or maintenance fees.
What should I do if I have a problem with a gift card purchase?
If you have a problem with a gift card purchase, you should contact the retailer or the company that issued the card.
After understanding Ontario’s Consumer Protection Act for Gift Card Purchases, you can confidently purchase gift cards and be assured that you are protected by the law. You can easily avoid gift card scams and fraudulent activities, as the act prohibits the selling of expired or non-refundable gift cards. Additionally, you can avoid any hidden fees and charges that may be imposed on the gift card without your knowledge. Knowing your rights as a consumer will not only save you money but will also give you peace of mind while making purchases.
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.