- As a starting point, Ontario consumer protection law generally prohibits putting an expiry date on a gift card sold to a consumer.
- Ontario’s approach generally restricts many of the fees businesses might be tempted to charge against a gift card balance — things like a periodic maintenance or dormancy fee that…
- A business is generally expected to clearly disclose any terms that do apply to a gift card, including any permitted fees, any conditions attached to a promotional card, and how a…
Selling gift cards looks simple: a customer pays now, and someone redeems the balance later. But Ontario consumer protection law puts real limits on how a business can structure a gift card program, particularly around expiry dates and fees, and a surprising number of small businesses build their gift card terms from a generic template that does not reflect Ontario’s rules.
This article covers the general framework a business needs to know before launching or updating a gift card program.
The General Rule: Gift Cards Generally Don’t Expire
As a starting point, Ontario consumer protection law generally prohibits putting an expiry date on a gift card sold to a consumer. The policy reason is straightforward: once a consumer has paid for value on a card, the business generally cannot use an expiry date to keep that value without providing anything in return.
This is a "general rule" for a reason — there are recognized exceptions (discussed below), and the exact scope of those exceptions is detailed enough that a business should not assume its particular card automatically qualifies for one without checking.
Fees: What’s Generally Restricted vs. What May Be Allowed
Ontario’s approach generally restricts many of the fees businesses might be tempted to charge against a gift card balance — things like a periodic maintenance or dormancy fee that quietly erodes an unused balance over time. Some narrower fees, such as a fee to replace a lost or damaged card, are treated differently than fees that reduce the card’s underlying value.
Because the line between a permitted fee and a prohibited one can be technical, do not build a gift card fee structure from a template found online or copied from another business — have it reviewed against the current rules.
Required Disclosures On or With the Card
A business is generally expected to clearly disclose any terms that do apply to a gift card, including any permitted fees, any conditions attached to a promotional card, and how a consumer can check their remaining balance. Terms buried only in fine print on the back of a card, in text too small to read, are a common compliance weak point.
Situations That Work Differently
| Card type | General treatment |
|---|---|
| Standard retail gift card sold to a consumer | Generally no expiry date; restricted fees |
| Card given away for free as a promotion or reward | Often treated differently — an expiry date may be permitted |
| Card redeemable for one specific, pre-identified good or service | Often treated differently than a general-purpose store card |
| Multi-retailer or mall-style gift card | May be subject to a different set of rules than a single-store card |
This table is a starting map, not a substitute for checking which category your specific card actually falls into.
Practical Checklist Before You Launch a Gift Card Program
- [ ] Confirm whether your card is a standard consumer gift card or falls into one of the exception categories
- [ ] Remove any expiry date unless you have confirmed an exception genuinely applies
- [ ] Review every fee you plan to charge against a card balance, not just the ones you assume are obviously fine
- [ ] Make sure your terms are printed or displayed somewhere a consumer can actually read them before buying
- [ ] Build a simple way for customers to check their balance
- [ ] Revisit your gift card terms if you change your fee structure, rebrand, or start selling through a new channel (e.g., online, third-party retailers)
Frequently asked questions
Can we put a "use by" date on a promotional gift card we give away for free?
Promotional or reward cards that a business gives away rather than sells are often treated differently than a purchased gift card, but the exact conditions matter. Confirm before assuming an expiry date is permitted.
What if our gift card is for a specific package, like one spa treatment, rather than a dollar value?
Cards tied to one specific, pre-identified good or service are often treated differently than a general-purpose dollar-value card. Get specific advice before assuming the general no-expiry rule does or does not apply.
Can we charge a fee if a customer loses their card and needs a replacement?
A fee tied specifically to replacing a lost or damaged card is generally treated differently than a fee that erodes the card’s underlying balance, but confirm the current rules before setting the fee amount.
Do these rules apply to store credit issued for a return, not a purchased gift card?
Store credit issued in place of a refund can raise similar issues, but is not always treated identically to a purchased gift card. It is worth reviewing your specific return-credit practice separately.
This is a corporate question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.