Retailers can no longer issue gift certificates (GCs) with expiration dates, the Department of Trade and Industry (DTI) said on Tuesday.

The DTI said it has signed the directive on June 25, after hearing complaints from consumers contesting the rationale by retailers for putting a validity period on GCs.

The trade department said that GCs should be considered "good as cash" since it has been paid in advance for future use.

Retailers however, are complaining that scrapping expiration dates on GCs will cause a proliferation of fraud or counterfeit versions.

Retailers said they will have to constantly change the design of the certificate to thwart counterfeiters, but this will be difficult if all GCs will be perpetually valid.

The DTI said its order will be done in two phases. The order will be published and will take effect after 15 days. All GCs that will be produced starting July 15 will be given a 2-year validity period. It said this should be enough time for retailers time to come up with safety nets for their GCs.

By July 1, 2012, all GCs should no longer bear any expiration dates. Unused and unexpired GCs by that time will be revalidated and the expiration removed.

The Philippine Association of Supermarkets plans to consult with its members to come up with a position paper.

Some members said the new system might affect financial statements. They said the 1-year validity period for GCs is reasonable, but if these are carried over to the next year, retailers may have a hard time computing the total sales.

The DTI said it is accepting position papers but they warn that violating the order may result to a P300,000 fine based on the consumer act.

The department clarified that GCs used in promotions or rewards are exempted from the order since promos are time-bound.

http://www.abs-cbnnews.com/business/...es-be-scrapped