Ontario to seek ban on gift card expiry dates

Ontario Government Services Minister Gerry Phillips says he will introduce legislation this fall to get rid of the expiry dates on gift cards.

On Sunday, Phillips said he hopes the legislation will pass this fall, butthat it may be difficult to have a new lawin place in time for the busy holiday season.

Phillips is seeking the ban, he says, because consumers deserve to get what they pay for and so should be able to redeem agift certificate at any time.

The move would make Ontario the first jurisdiction in the country to ban gift card expiry dates.

"We look forward to working with the government to create rules that respond to the concerns of consumers but also take into consideration the legitimate needs of retailers,"Diane J. Brisebois, the president and CEO of theRetail Council of Canada, said in a release.

"I am sure a balance can be found," she said.

In a 2005 study on the spread of gift cards, Statistics Canada noted that gift cardsappear to be the main contributor to a new phenomenon that has seen a moderation in the usual drop-off in retail sales in January.

Retail sales in January2003were40.3 per centbelow the2002monthly average. However, in January2004, sales were38.3 per centbelow the previous year monthly average, and in January2005, they were38.5 per centbelow the previous year monthly average.