292_2008 — Prepaid Purchase Cards Regulation

s. 1 — Definitions

In this regulation, Act means the Business Practices and Consumer Protection Act.

s. 1.1 — Limitation on meaning of "prepaid purchase card"

For the purposes of Part 4.1 of the Act, prepaid purchase card does not include a prepaid purchase card issued by

s. 1.1(a)

a bank listed in Schedule I, II or III of the Bank Act (Canada), or

s. 1.1(b)

a company to which the Trust and Loan Companies Act (Canada) applies.

s. 2 — Exemptions from expiry date prohibition

Section 56.2 (1) [no expiry date] of the Act does not apply to any of the following:

s. 2(a)

a prepaid purchase card that is issued or sold for a specific good or service;

s. 2(b)

a prepaid purchase card that is issued or sold for a charitable purpose;

s. 2(c)

a prepaid purchase card that is issued or sold

s. 2(c)(i)

for a marketing, advertising or promotional purpose, and

s. 2(c)(ii)

to a person who

s. 2(c)(ii)(A)

provides nothing of value in exchange for the card, or

s. 2(c)(ii)(B)

purchased the card for an amount less than its full monetary value.

s. 3 — Permitted fees in relation to prepaid purchase cards

s. 3(1)

A supplier may charge a fee

s. 3(1)(a)

for replacing a lost or stolen prepaid purchase card, or

s. 3(1)(b)

to customize a prepaid purchase card.

s. 3(2)

A supplier that sells a prepaid purchase card entitling a consumer to apply it towards purchasing goods or services from multiple unaffiliated sellers may do the following:

s. 3(2)(a)

at the time the card is purchased, charge a maximum purchase fee of $1.50;

s. 3(2)(b)

subject to section 4 (2) and subsection (3) of this section, charge a post-purchase fee in relation to the card if

s. 3(2)(b)(i)

the fee is charged no earlier than

s. 3(2)(b)(i)(A)

15 months after the end of the month in which the card is purchased, if the consumer holding the card does not deliver written notice to the supplier requesting an extension in that 15th month, or

s. 3(2)(b)(i)(B)

18 months after the end of the month in which the card is purchased, if the consumer holding the card delivers written notice to the supplier requesting an extension in the 15th month after the end of the month in which the card is purchased, and

s. 3(2)(b)(ii)

the fee does not exceed $2.50 per month.

s. 3(3)

A post-purchase fee permitted under subsection (2) (b) may be charged only as a deduction from the balance of the monetary value remaining on the prepaid purchase card.

s. 4 — Manner of providing information required under section 56.4 of the Act

s. 4(1)

At the time a prepaid purchase card is issued or sold, the supplier must provide the information required under section 56.4 (1) of the Act clearly and in a manner that is likely to bring it to the attention of the person to whom the card is issued or sold.

s. 4(2)

Without limiting subsection (1), a supplier who sells a prepaid purchase card entitling a consumer to apply it towards purchasing goods or services from multiple unaffiliated sellers and wishes to charge post-purchase fees permitted under section 3 (2) (b) in respect of that card must prominently display on the card itself, in a clear and comprehensible manner, the information described in section 3 (2) (b).