Gift cards in Nova Scotia will no longer have fees or expiry dates.
The province announced a rule change Thursday that will ban retailers from placing end dates on gift certificates as of Feb. 1, 2010.
“It’s really good news for Nova Scotians. It’s consumer protection at its finest,” said Service Nova Scotia Minister Ramona Jennex.
Most other provinces in Canada have enacted similar rules. Consumer advocates have long decried the expiry dates, saying more consumer money evaporates every year as the cards expire.
The impact for people doing their Christmas shopping will be immediate. Any expiry dates after Feb.1 for dollar value gift cards are now null and void. As of February, no gift cards will have expiry dates to begin with.
Fees on using gift cards, such as inactivity charges, will also be illegal after Feb. 1. Customizing and replacement fees will still be allowed.
The only exception to the deadline is gift cards for services without a specific value, such as a free meal or haircut. The expiry date on existing cards will still stand, even if they fall after the Feb. 1 deadline.
“That would be because the retailers need to take until Feb. 1 to change over their systems,” Jennex explained.
As of Feb. 1, gift cards for services will also be expiry-date free.
Another element of the rule changes is all gift cards must now include restrictions, limitations, refund policy information and contact information to be included in writing on the card.
The Canadian Federation of Independent Business wasn’t pleased by the announcement. They sent out a release criticizing the government’s decision close to Christmas.
“Business owners shouldn’t be expected to divert their attention during the holiday season to read up on, and adjust for, more government regulation,” reads the release.
