DTI mulls no expiration policy on gift certificates

MANILA, Philippines - The Department of Trade and Industry (DTI) is expected to come out with a decision eliminating the expiration date on gift certificates (GCs) by June.

In an interview, Trade Undersecretary Zenaida C. Maglaya said that they gave the issuers of gift certificates like the Philippine Retailers Association (PRA) until the end of the month to study the proposal of the government to remove the expiration date.

According to Maglaya, the gift certificates should have no expiration because it has already been paid for and the issuing company has already gotten revenues from it. It should be rightful therefore that consumers are able to buy something with it.

Maglaya said the usual practice is that the gift certificates expire after two years. She said the PRA is saying that it might be easy to make counterfeit gift certificates once the expiration is removed.

The PRA is proposing that instead of lapsing, they will re-validate the gift certificate after a certain period. However, this would mean an added cost to the merchandisers which could be passed on to consumers.

Maglaya said they prefer a no expiration policy instead of the revalidation policy. By June, the DTI will issue a department order which will cancel the expiration date of gift certificates.

The undersecretary said most of the gift certificates issued by Rustan’s Department Store have no expiration date. Majority of the gift certificates issued are from SM Department Store.

Likewise, Maglaya said they are looking into the policy of stores that the gift certificate must be used in full. She said there are gift certificates worth P1,000 up and consumers must be given leeway.

The move to remove the expiration date was started by former Trade Secretary Peter B. Favila last year.