Canadian Consumer Handbook 2008-2009

Gift Cards

A gift card can be used to purchase goods or services from a particular store or chain of stores. Consumers often purchase gift cards to give to friends or family as gifts. The recipients can then use the money on the card to purchase goods or services.

Gift cards are a convenient gift option when shopping for someone who frequents a particular store or who has specialized tastes that you do not share. If, for example, you know your friend likes science fiction but you do not know much about it, you can buy him or her a gift card for a store that sells science fiction movies and books.

When purchasing gift cards, consider the following:

• Are there any restrictions on the card? Is there an expiry date? Are there any limitations on what kinds of products or services may be purchased? (Some cards might specify that they may only be used on regularly priced items.)
• Can the card be returned for a refund if the person you are giving it to does not use it?
• Does the card have any fees associated with it that either you or the recipients have to pay?
• Is your friend likely to use the gift card? Some people never get around to using a gift card or wait too long, only to find the card has expired or is worth less than the face value. Some companies make a lot of money because their gift cards are never used. Be sure your friend shops at the store where you are purchasing the card. If you are not sure, consider giving cash instead.

Be sure to ask the retailer about the considerations listed above before you purchase the card.

The responsibility for regulating gift cards belongs to the provinces and territories. Check with your provincial or territorial consumer affairs office to determine what rules are in place about gift cards where you live. In Ontario, for example, as of October 2007, gift cards must no longer have expiry dates, and retailers must not charge up-front fees for most cards and must clearly explain the terms and conditions associated with the cards.