Retailers told to dispose GCs with expiry dates

CEBU, Philippines - The Department of Trade and Industry (DTI-7) is reminding retail and services institutions to dispose of existing Gift Certificates (GCs) with identified expiry dates, as the government may implement this particular regulation by July 2012.

 Although there have been existing position papers that oppose this idea, DTI-7 division head Carol Josh Ventura reiterated that as of this moment, there is a call to encourage all retail and service players to as much as possible, issue GCs without expiry dates anymore.

For his part, Philippine Retailers Association president Bernie Liu said that the organization is now currently studying the Bill that will amend the ruling on the banning of expiration dates of GCs.

“We should remember that laws and policies should not be seen as hindrances or obstructions to the industry, but rather as conduits to help create a rich and fertile milieu for development and expansion, as well as improve our services to the lifeblood of our businesses—our customers,” said Liu, who is also the president of the Golden ABC Inc., the maker of Penshoppe and other well-known apparel brands in the Philippines, and other countries.

Liu said because of the industry’s bid to promote strategic partnership with the government, “PRA makes it a point to meet, lobby, and submit position papers to the senate or the congress for bills that directly affect our sector.”

PRA will work closely with the Department of Trade and Industry (DTI) to give inputs on the upcoming implementation of eradicating the validity of a Gift Certificate issued by retailers.

“We are still working with the DTI on this, to make sure that amendments to this Bill be made so that the final outcome can be beneficial to both the retail industry and the consumers,” he said referring to the move to ban the expiry date on Gift Certificates.

According to Ventura, DTI is also opening their doors to accept position papers from other concerned establishments, such as hotels, resorts, restaurants, spa outlets, among others.

A gift certificate is a paper document containing the authorized signature of a restaurant, store, beauty salon or another establishment that serves as a voucher for the provision of service or goods.      

In June of 2010, DTI signed a memorandum lifting restrictions or expiry dates identified in the Gift Certificates.

However, to be exempted are those certificates that are issued due to promotions, said DTI undersecretary Zenaida Maglaya.

“To be exempted are the ones given as promos because sometimes, there are promos that are really time-bound,” Maglaya said earlier.

In agreeing to lift the expiration date of GCs, the government has to do a careful balancing act between concerns raised by consumers and those of suppliers who have warned against the proliferation of fake certificates, Maglaya said.— (THE FREEMAN)