Gift Certificates: Validity In New Brunswick

In New Brunswick, gift cards and gift certificates are subject to guidelines under the Gift Cards Act, which protects consumers with respect to the terms and conditions of their use. Generally, expiry dates on gift cards are prohibited, and they are valid until fully redeemed or replaced. However, there are certain exceptions to this rule, including cards used for charitable purposes, promotional cards, and cards issued or sold for a specific product or service. Fees on gift cards are also regulated, with charges permitted for customisation, replacing lost or stolen cards, and dormancy. These rules apply to gift cards bought on or after 18 June 2008.

Expiry dates on gift cards in New Brunswick

Expiry dates on gift cards are prohibited in New Brunswick under the Gift Cards Act. This Act ensures that consumers get what they paid for, meaning that the value of a gift card cannot be reduced or eliminated due to service fees or expiry dates. The Act applies to gift cards bought on or after 18 June 2008 and includes gift certificates and prepaid phone cards.

However, there are certain exceptions to the rule. Expiry dates are permitted on gift cards that are:

• Issued or sold for a specific good or service, such as a manicure or a facial.
• Issued for charitable purposes, to help organisations raise money.
• Issued for promotional purposes, such as those given away as a prize or sold at a discount.

If a gift card has an expiry date that is in violation of the Act, the card remains valid as if there were no expiry date.

It's worth noting that cards issued by a credit card company, bank, or telephone company fall under federal jurisdiction and are therefore exempt from the Act.

Exceptions to the ban on expiry dates

The Gift Cards Act in New Brunswick prohibits expiry dates on gift cards. However, there are some exceptions to this rule:

• Gift cards purchased for a specific product or service, such as a manicure or a facial, are allowed to have an expiry date. Retailers are not expected to offer the same product or service at the same price indefinitely.
• Gift cards purchased for charitable purposes are allowed to have an expiry date. These are offered by retailers and other businesses to charitable organisations to help them raise money, and it is reasonable that they are time-limited.
• Gift cards purchased for promotional purposes are also allowed to have an expiry date. This includes cards given away as prizes or sold to consumers at a discount.

Additionally, while fees on gift cards are generally not permitted under the Act, there are exceptions for fees related to customisation, replacing lost or stolen cards, and dormancy.

Fees on gift cards

In New Brunswick, the Gift Cards Act prohibits fees on gift cards, except for the following:

• Customisation of a gift card, such as putting a consumer's photo on the card.
• Replacing a lost or stolen card.
• Dormancy.

Dormancy fees may be charged after a set period on multi-store cards, which are valid for use at multiple, unaffiliated stores, such as those sold by a shopping mall. The regulation allows for a monthly fee of up to $2.50 if the card has been inactive for 15 months. Consumers may request a three-month extension in the 15th month, giving them up to 18 months to use the card without penalty.

If a fee is charged in contravention of the Act, consumers have the right to demand a refund by giving written notice to the issuer within one year of the date the fee was paid. The issuer is then required to provide the refund within 15 days of receiving the notice.

Gift cards in New Brunswick are also subject to the federal Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which places general limitations on fees. For example, issuers can charge an "inactivity fee" if the card has not been used within 12 months. Under the law, only one such fee is allowed per calendar month.

Consumer protections under the Gift Cards Act

The Gift Cards Act in New Brunswick protects consumers by ensuring they get what they paid for. This means that the value of a gift card cannot be reduced or eliminated due to service fees or expiry dates. The Act applies to gift cards bought on or after 18 June 2008 and includes gift certificates and prepaid phone cards.

Expiry Dates

Generally, expiry dates on gift cards are prohibited. If a gift card has an expiry date in violation of the Act, it remains valid as if there were no expiry date. However, there are some exceptions where gift cards can have an expiry date:

• The card is issued or sold for a specific good or service. For example, a manicure or a facial.
• The card is issued for charitable purposes to help organisations raise money.
• The card is issued for promotional purposes, such as a prize or a discount.

Fees

Fees on gift cards are not permitted under the Act, except in the following circumstances:

• Customisation of a gift card, such as adding a consumer's photo.
• Replacing a lost or stolen card.
• Dormancy fees on multi-store cards (valid for use at multiple unaffiliated stores) after a set period of inactivity. The regulation allows for a monthly fee of up to $2.50 if the card has been inactive for 15 months. Consumers can request a three-month extension, giving them up to 18 months to use the card without penalty.

Disclosure Requirements

All issuers of gift cards must disclose all restrictions, limitations, and conditions regarding the use, redemption, or replacement of the gift card. This includes any permitted fees or expiry dates. This information must be provided in writing and presented clearly to the cardholder.

For multi-store cards, additional disclosure requirements apply. Issuers must include a prominent notice on the front of the card indicating that the back of the card contains information about the fees. The back of the card must clearly describe the amount payable for such fees and the number of months that must elapse before the fees are applied.

Gift cards and refunds

In New Brunswick, gift cards and gift certificates are subject to guidelines under the Gift Cards Act, which came into force in June 2008. This act provides consumer protection with respect to the terms and conditions of use, expiry dates, and fees.

Expiry Dates

Generally, expiry dates on gift cards are prohibited in New Brunswick. This means that gift cards remain valid until fully redeemed or replaced. However, there are certain exceptions to this rule:

• Gift cards or certificates used for charitable purposes are allowed to have expiry dates.
• Promotional cards, such as those received with a minimum purchase at a retail store, can have an expiry date.
• Gift cards or certificates issued or sold for a specific product or service (e.g., a manicure or a facial) may have an expiry date.

Fees

Fees on gift cards are generally not permitted under the Gift Cards Act, with a few specific exceptions:

• Fees for customization of a gift card, such as adding a consumer's photo, are allowed.
• A fee may be charged to replace a lost or stolen card.
• Dormancy fees may be charged on multi-store cards (valid at multiple unaffiliated stores) if the card has been inactive for a certain period, typically 15 months. The fee is limited to a maximum of $2.50 per month, and consumers can request a three-month extension.

Refunds

If a fee is charged on a gift card in contravention of the Gift Cards Act, consumers have the right to demand a refund. This can be done by providing written notice to the issuer within one year of the date the fee was paid. The issuer is then required to provide the refund within 15 days of receiving the notice.

It is important to note that the Gift Cards Act applies only to gift cards and certificates bought on or after June 18, 2008, and it does not apply to prepaid phone cards or cards issued by a credit card company, bank, or telephone company, which fall under federal jurisdiction.

Frequently asked questions