SaskTel claims they don’t have to observe the rules around gift cards, even though their Prepaid phone cards are the same idea. That’s why they can go back to forcing people to buy new $20 cards every 60 days, because they’ll otherwise expire the time. In effect, they are charging a $20/2month inactivity fee, which is not allowed in Saskatchewan law.
SaskTel was initially scared of the law enough to discontinue the fee robbing structure they had set up. For about a year you could buy the one $20 card and just use it sparingly. Then they sprung an $8/month minimum charge on everyone, and because enough people complained they offered the initial, sucky, $20/2month inactivity fee again.
Gift Cards
Part IV.6 of the Act sets out rules regarding gift cards and gift certificates (prepaid purchase cards). With some exceptions, it:
* prohibits expiry dates on most gift cards and certificates;
* requires disclosure of terms and conditions on gift cards and certificates;
* prohibits suppliers from charging inactivity or dormancy fees that reduce the value of a gift card or gift certificate if it is not used within a certain period of time;
* prohibits any other fees that may be charged in relation to gift cards or certificates unless authorized in the regulations; and
* provides that any agreement, whether verbal, written, express or implied, that the benefits of the Act do not apply or are not available, is void. A consumer may recover any money paid under such an agreement by commencing an action in court.
Expiry dates, and inactivity or dormancy fees will be allowed for cards that have been issued for a charitable purpose or if the consumer has provided nothing of value in exchange for the card. Fees are allowed to customize a card or to replace a lost or stolen card.
When a prepaid purchase card is issued or sold, the supplier must give the consumer the following information:
* a description of all restrictions, limitations and conditions on the use of the card, including any fee or expiry date permitted in the Act; and
* a description of the way in which the consumer can obtain information about the card, including any remaining balance.
Remedies
The Director or the court has investigatory powers under the Act, including the right to enter premises, and search and seize documents.
The Director may order a person who fails to comply with the Act:
* to stop an act or to begin an act;
* to comply with the Act; and
* to do or stop doing any other thing the Director considers necessary.
The Director may apply to the court for:
* an order directing the person and, in the case of a corporation or partnership, the directors and officers or the partners, to comply with the Act or preventing that person from contravening the Act; and
* any other order or remedy the Director may request.
The court may make any order it considers necessary.