Gift Cards

Gift cards are a popular way to give someone a flexible gift. But not all gift cards are the same—and some come with rules that can affect how and when you use them. In New Brunswick, the Gift Cards Act helps protects you from unfair fees and expiry dates.

What’s covered under the Gift Cards Act?

The Act applies to most gift cards and certificates bought on or after June 18, 2008—including prepaid phone cards. It ensures that the value of your card isn’t reduced by service fees or expiry dates, with a few exceptions.

Can gift cards expire?

In most cases, no.

Expiry dates are only allowed when:

The card is for a specific product or service (like a massage or haircut). Retailers are not expected to make the same product or service available at the same price indefinitely.
The card is issued for a charitable purpose. Retailers and other businesses offer these types of gift cards to charitable organizations to help them raise money, and it is reasonable that they are time-limited.
The card is promotional. A card that is given away as a prize or sold to consumers at a discount is allowed to have an expiry date.

Are fees allowed?

Most gift cards can’t have fees, but there are a few exceptions:

Customization fees (like adding a customer’s photo)
Replacement fees for lost or stolen cards
Dormancy fees on multi-store cards (cards used at different, unrelated stores)

Dormancy fees can only be charged after 15 months of no activity. The maximum fee is $2.50 per month. You can request a 3-month extension before the fee starts, giving you up to 18 months to use the card without penalty.

What if you’re charged an illegal fee?

You have the right to a refund. Send a written notice to the card issuer within one year of paying the fee. They must refund you within 15 days of receiving the notice.

What information must be provided?

Before you buy or use a gift card, you have the right to know exactly how it works. Businesses that issue gift cards must clearly explain the terms—so there are no surprises later.

Here’s what they must tell you:

Expiry dates and fees
If the card has an expiry date or any fees (like replacement or dormancy fees), those must be clearly stated.
How to use, redeem, or replace the card
You should know how to spend the card, what to do if it’s lost or stolen, and how to get a replacement if needed.

For multi-store cards (cards that can be used at different, unrelated stores), there are extra rules to protect you:

The front of the card must include a notice
It should say that there’s important fee information on the back.
The back of the card must show details
It must clearly list:
- The amount of any dormancy fee
- When the fee starts (after 15 months of no use)
- How often the fee will be charged (usually monthly)

Always read both sides of the card and ask questions before you buy. If anything is unclear, the seller should be able to explain it.

What happens if the business closes?

If a store is closing, try to use your gift card before it shuts down. If it’s just one location closing, you may still be able to use the card at other branches or online.

If the business is going bankrupt or restructuring, your card’s value may be affected. A court-appointed Trustee or Monitor can help explain your options. You can also visit the Office of the Superintendent of Bankruptcy for more information.