Dear PAO,
During our Christmas party, I won P30,000.00 worth of gift checks. I was assigned to work overseas this year (2026), so I may not be able to use the gift checks immediately. May I still use my gift checks in the following year upon my return?
Sab
Dear Sab,
Your query is governed by Republic Act (RA) 10962, otherwise known as the Gift Check Act of 2017. This law recognizes that a gift check represents monetary value held in trust by the issuer for the benefit of the bearer or beneficiary. It is founded on the principle that consumers should not be unjustly deprived of the value of their money. Accordingly, the Act seeks to promote fair, honest, and equitable relations in consumer transactions and to protect consumers from deceptive, unfair, and unconscionable sales acts and practices.
Section 4 of RA 10962 defines gift check or gift card as “any instrument issued to any person, for monetary consideration, honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services. The instrument may be in the form of paper, card, code, or other device, and shall remain valid until the cessation of business of the issuer.”
Moreover, the same Act enumerates the prohibited acts, which include: (a) issuing a gift check that bears an expiration date; (b) imposing an expiration date on the stored value, credit, or balance of the gift check; and (c) refusing to honor the unused value, credit, or balance thereof. However, the Act expressly excludes gift checks issued under loyalty, rewards, or promotional programs, as may be determined by the Department of Trade and Industry (DTI). (Sections 5 and 6, RA 10962)
Nonetheless, under Section 7 of the Act, the issuer or its accredited merchants may refuse to honor a gift check in the following instances: (a) when the gift check is lost through no fault of the issuer; or (b) when the gift check is mutilated or defaced, through no fault of the issuer, to the extent that its security or authenticity features can no longer be identified.
Any violation of RA 10962 subjects the issuer to the obligation to return the unused balance of the gift check within 90 days from the DTI’s declaration of violation. In addition, the issuer shall be liable to pay a fine ranging from P500,000 to P1 million. For a second offense, the issuance of gift checks shall be suspended for a period of three months, in addition to the fine. For a third offense, the authority to issue gift checks shall be cancelled altogether. (Section 11, Ibid.)
In light of the foregoing, you may validly use your gift check at any time upon your return to the Philippines, provided that you are able to present the original physical copy of the gift check and that it is not damaged, mutilated, or otherwise rendered unidentifiable.
We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net
