Philippines

By Franchette M Acosta, senior partner, V&A Law

E: fm.acosta@thefirmva.com

On December 19, 2017, the Gift Check Act of 2017 (Republic Act No. 10962) was signed into law. The preamble of the law reiterates government policy of protecting and promoting consumer welfare and establishing standards of conduct of business. In particular, the law protects the holder of a gift check/certificate/card or a coupon/voucher and imposes on the issuer stricter standards of law. A gift check/certificate/card is any instrument issued to any person in exchange for monetary consideration which is honored upon presentation to a merchant. The instrument may be in paper, card, code or other device and will remain valid until the cessation of the business of the issuer. A coupon or a voucher is any instrument that entitles the holder to a discount or to exchange the same for an identified good or service.

The law prohibits the following acts:

  1. Issuing a gift check that bears and expiry date;

  2. Imposing an expiry date on the stored value, credit or balance of the gift check; or

  3. Refusing to honor the unused value, credit or balance stored in the instrument.

In case of violation of the law, the issuer will be required to return the unused balance of the gift check. In addition, the issuer will be subject to a fine PhP 500,000 to PhP 1,000,000.00. In addition to the imposition of a fine, in case of a second offense, the issuance of a gift check will be suspended for 3 months. The third offense will be penalized with cancellation of the issuance of gift check by the issuer.

This article is published for information purposes only, and should not be considered as legal advice.

http: www.thefirmva.com
Email: fm.acosta@thefirmva.com

[sharethis]
Tags: Consumer welfare, The Philippines
Articles by Lawyer
Philippines: Timing for Notification under the PCC Rules on Merger Procedure
The Philippine Competition Commission published its Rules on Merger Procedure ...
Joint Venture Agreements with Philippine Local Government Units as Public-Private Partnership Modality
The Duterte Administration is poised to fund its aggressive infrastructure program internally and through official development assistance ...
Update on Data Privacy Law Compliance in the Philippines
Automated Decision-Making Operations, Institutions Likely to Pose Threats to Data Subjects and Phase 1 and Phase 2 of Registration with the NPC ...
Philippine Competition Commission Merger Review Guidelines
On 23 March 2017 the The Philippine Competition Commission (PCC) released the Merger Review Guidelines ...
Related Articles by Firm
Casino Covered by Philippine Anti-Money Laundering Laws
The Philippine government has expanded anti-money laundering laws to include casinos, including internet and ship-based casinos ...
Philippine rules on merger procedure
The Philippine Competition Commission issued the Rules on Merger Procedure which explain the timing for the filing of a notice for covered transactions, the procedure for notification, Phase 1 and Phase 2 review and other matters, including confidentiality claims ...
Philippines: Timing for Notification under the PCC Rules on Merger Procedure
The Philippine Competition Commission published its Rules on Merger Procedure ...
Joint Venture Agreements with Philippine Local Government Units as Public-Private Partnership Modality
The Duterte Administration is poised to fund its aggressive infrastructure program internally and through official development assistance ...
Update on Data Privacy Law Compliance in the Philippines
Automated Decision-Making Operations, Institutions Likely to Pose Threats to Data Subjects and Phase 1 and Phase 2 of Registration with the NPC ...
Philippine Competition Commission Merger Review Guidelines
On 23 March 2017 the The Philippine Competition Commission (PCC) released the Merger Review Guidelines ...
Related Articles
Certificate of Good Conduct Required for all UAE Employment Visas
New requirement will be introduced shortly ...
India: Foreign Exchange Management Regulation
Significant changes for transfer or issue of security to a person resident outside India ...
Canada to Revise Tax Voluntary Disclosures Program
Effective March 1, 2018: New Regime will Result in Limited Relief for Certain Taxpayers Disclosing Errors and Omissions ...
Related Articles by Jurisdiction
Fake news and its web of legal issues in the post-truth era
Oxford Dictionaries’ Word of the Year for 2016 is “post-truth” — an adjective defined as “relating to or denoting circumstances in which objective facts are less influential in shaping public opinion than appeals to emotion and personal belief”. ...
Uber/GrabCar drivers: Independent contractors or employees?
The buzz about the legality of Uber and GrabCar operating in the Philippines might have died down, but now there is another legal issue surrounding them: whether their drivers are employees or ...
Latest Articles
Certificate of Good Conduct Required for all UAE Employment Visas
New requirement will be introduced shortly ...
India: Foreign Exchange Management Regulation
Significant changes for transfer or issue of security to a person resident outside India ...
Canada to Revise Tax Voluntary Disclosures Program
Effective March 1, 2018: New Regime will Result in Limited Relief for Certain Taxpayers Disclosing Errors and Omissions ...