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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Second Regular Session 
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S E N A T E  
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Introduced by Senator Manuel “Lito” M. Lapid 
The proliferation of cashless mode of payment other than credit and debit cards 
such as gift certificates, store gift cards, and similar medium like general-use prepaid 
cards exposes consumers to vague restrictions and conditions that benefit the issuers 
of these certificates and cards. 
Gift certificates and store gift cards are becoming popular choices as gift items 
for practical reasons but a large chunk of this prepaid medium of exchange go unused 
because they get lost, expire or are subject to various restrictions that consumers end 
up not using. Others simply go half-used as these certificates and cards are good for 
single transactions only, a policy not made known upon purchase of the same or were 
not explicitly written in the certificates and cards. 
Title Ill, Chapter I, Article 50 of the Consumer Act of the Philippines (RA 7394), 
provides for the regulation of sales acts and practices and prohibition against deceptive 
sales acts or practices. 
This bill seeks to protect consumers against hidden fees, expiration dates and 
single-transactions-only policies that go with gift certificates, store gift cards, and 
general-use prepaid cards by implementing measures to protect them against 
deceptive, unfair and unconscionable sales acts and practices relating to gift 
certificates, store gift cards, and other general-use prepaid cards. 
In view of the above, passage of this bill is most earnestly s 
MA 
b “LITO” M. LAPID 
Senafor 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
Second Regular‘ Session 
1 
S E N A T E  
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Introduced by Senator Manuel “Lito” M. Lapid 
AN ACT 
PROHIBITING DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES 
ACTS AND PRACTlCES RELATING TO GIFT CERTIFICATES, STORE 
PENALTIES THEREFOR AND FOR OTHER PURPOSES 
GIFT CARDS, AND OTHER GENERAL-USE PREPAID CARDS, PROVIDING 
Be if enacted by fhe Senate and fhe House of Represenfafives of fhe Philippines 
in Congress assembled: 
SECTION 1. Title -This Act shall be known as the “Fair Gift Card Act of 2009 
SEC. 2. Declaration of Policy - It is the policy of the State to protect the 
interests of consumers, promote their general welfare and to establish standards of 
conduct for business and industry. As such, the State shall implement measures to 
protect consumers against deceptive, unfair and unconscionable sales acts and 
practices relating to gift certificates, store gift cards, and other general-use prepaid 
cards and provide programs on Information, Education and Communication Campaign 
(IEC) to educate the general public. 
SEC. 3. Definition of Terms - For purposes of this Act, the following terms shall 
be defined as follows: 
1) DORMANCY FEE; INACTIVITY CHARGE OR FEE- mean a fee, charge, or penalty 
for non-use or inactivity of a gift certificate, store gift card, or general-use prepaid card. 
2) GENERAL-USE PREPAID CARD- means a card or other electronic payment device 
issued by a financial institution or licensed money transmitter that is redeemable at 
multiple, unaffiliated merchants or service providers, or automated teller machines, 
issued in a requested amount whether or not that amount may, at the option of the 
issuer, be increased in value or reloaded if requested by the holder, purchased or 
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loaded on a prepaid basis, and honored, upon presentation, by merchants for goods or 
services, OT at automated teller machines. 
3) GIFT CERTIFICATE- means a written promise that is presented as a gift that entitles 
the recipient to select merchandise of an indicated cash value redeemable at a single 
merchant or an affiliated group of merchants that share the same name, mark, or logo, 
issued in a specified amount and cannot be increased, purchased on a prepaid basis in 
exchange for payment and honored upon presentation by such single merchant or 
affiliated group of merchants for goods or services; 
4) SERVICE FEE- means a periodic fee, charge, or penalty for holding or use of a gift 
certificate, store gift card, or general-use prepaid card. 
5) STORE GIFT CARD- means a plastic card encoded with monetary v’alue on a 
magnetic stripe or other electronic payment device that is an effective replacement for 
cash and have many applications for low-value retail purchases redeemable at a single 
merchant or an affiliated group of merchants that share the same name, mark, or logo, 
issued in a specified amount and may be reloaded or may not be increased in value, 
purchased on a prepaid basis in exchange for payment and honored upon presentation 
by such single merchant or affiliated group of merchants for goods or services; 
SEC. 4. UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING GIFT 
CERTIFICATES, STORE GIFT CARDS, AND GENERAL-USE PREPAID CARDS. 
(a) Prohibition on Imposition of Fees or Charges- 
(1) IN GENERAL- Except as provided under paragraphs (2) through (4), it shall 
be unlawful for any person to impose, with respect to a gift certificate, store gift 
card, or general-use prepaid card, a dormancy fee, inactivity charge or fee, or a 
service fee. 
(2) EXCEPTION- A dormancy fee, inactivity charge or fee, or service fee may 
be charged with respect to a gift certificate, store gift card, or general-use 
prepaid card if-- 
(A) such certificate or card has a remaining value of Php200.00 or less at 
the time such charge or fee is assessed; 
(B) such charge or fee does not exceed Php50.00; 
(C)(i) there has been no activity with respect to the certificate or card in 
the 24-month period ending on the date the charge or fee is imposed; and 
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(ii) the certificate or card was issued more than 24 months before such 
date; 
(D) the holder of the certificate or card may reload or add value to the 
certificate or card; and 
(E) the disclosure requirements of paragraph (3) are met. 
(3) DISCLOSURE REQUIREMENTS- The disclosure requirements of this 
paragraph are met if-- 
(A) the gift certificate, store gift card, or general-use prepaid card clearly 
and conspicuously states in at least IO-point type-- 
(i) that a dormancy fee, inactivity charge or fee, or service fee may 
be charged; 
(ii) the amount of such fee or charge; 
(iii) how often such fee or charge may be assessed; 
(iv) that such fee or charge may be assessed for inactivity; and 
(v) that the same is valid for a single transaction only 
(B) the issuer of such certificate or card informs the purchaser of such 
charge or fee before such certificate or card is purchased, regardless of 
whether the certificate or card is purchased in person, over the Internet, or 
by telephone. 
(4) EXCLUSION- The prohibition under paragraph (1) shall not apply to gift 
certificates that-- 
(A)(i) are distributed pursuant to an award, loyalty, or promotional 
program; and 
(ii) with respect to which there is no money or other value exchanged; 
(B)(i) expire not later than 30 days after the date they are sold; and 
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(ii) are sold below the face value of the certificate to an employer or to a 
non-profit or charitable organization for fund-raising purposes. 
(b) Prohibition on Sale of Gift Certificates, Store Gift Cards, and General-Use Prepaid 
Cards with Expiration Dates- 
(1) IN GENERAL- Except as provided under paragraph (2), it shall be unlawful 
for any person to sell or issue a gift certificate, store gift card, or general-use 
prepaid card that is subject to an expiration date. 
(2) EXCEPTIONS- A gift certificate, store gift card, or general-use prepaid card 
may contain an expiration date if-- 
(A) the expiration date is not less than 5 years after the date on which the 
card is purchased; and 
(B) the terms of expiration are prominently disclosed in all capital letters 
that are at least IO-point type. 
SEC. 5. Penalties. - Any person, natural or juridical, found guilty of violating this 
Act shall upon conviction, be subject to a fine of not less than ten thousand pesos 
(Phpl0,OOO.OO) but not more than fifty thousand pesos (Php50,000.00), 
Any director, officer or agent of an association or corporation who shall authorize, 
order or perform any of the acts or practices constituting in whole or in part a violation of 
Section 4 of this Act, shall be subject to penalties to which that corporation may be 
subject. 
In case the violation is committed by, or in the interest of a foreign juridical 
person duly licensed to engage in business in the Philippines, such license to engage in 
business in the Philippines shall immediately be revoked. 
SEC. 6. Repealing Clause. - All laws, presidential decrees, executive orders, rules and 
regulations or parts thereof which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SEC. 7. Separability Clause. - If, for any reason, any part or provision of this Act is 
declared unconstitutional or invalid, such parts not affected thereby shall remain in full 
force and effect. 
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SEC. 8. ffiecfjvjfy. - This Act shall take effect fifteen (15) days after its complete 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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