With the holiday season fast approaching, the Manitoba government has put in place new rules to further protect consumers by prohibiting businesses from charging inactivity fees on gift cards. This announcement was made by Tourism, Culture, Heritage, Sport and Consumer Protection Minister Ron Lemieux.
“Manitobans already enjoy strong consumer protection with respect to gift cards but there is room for improvement,” said Minister Lemieux. “The new rules continue our commitment to ensuring Manitoba’s consumer protection legislation remains current and promotes a fair marketplace.”
Previously, a gift card sold by shopping malls could be subject to inactivity fees if the card had not been active for 12 consecutive months. Now, when consumers buy a gift card, they can be confident the value won’t be eroded if they choose not to use the card for an extended period, the minister said, adding this strengthens existing gift card rules that offer consumers protection by:
- prohibiting expiry dates on gift cards, unless the card is for a specific good or service, or is given away for free;
- prohibiting suppliers from charging fees on gift cards unless they are replacing a lost or stolen card, customizing a card or the card is given away for free;
- requiring that all restrictions, limitations and conditions on the use of the card or certificate be disclosed; and
- allowing for administrative penalties to be issued if a business does not comply with the legislation.
If a business fails to comply with the requirements related to gift cards, the business may be required to pay an administrative penalty ranging from $1,000 to $5,000 for an individual and from $5,000 to $20,000 for a corporation.
Manitobans are encouraged to learn more about their consumer protection rights under the law. For more information, visit www.gov.mb.ca/consumerinfo.
