AI-assisted research summary: This regulation limits fees on prepaid purchase cards, requires suppliers to disclose card terms to holders, and lets some cards be exempt from expiry-date rules.
Prepaid Purchase Cards Regulation, M.R. 98/2007 The Consumer Protection Act , C.C.S.M. c. C200 Regulation 98/2007 Registered July 31, 2007 bilingual version (HTML) Table of Contents Section 1 Definitions 1.1 Certain prepaid purchase cards exempt 2 Limit on fees 3 Information requirements 4 Expiry dates 5 Administrative penalty 6 Transitional 7 Review 8 Coming into force Definitions 1 The following definitions apply in this regulation. "Act" means The Consumer Protection Act . («  Loi ») "supplier" means a person who issues or sells a prepaid purchase card. (« fournisseur ») Certain prepaid purchase cards exempt 1.1 A prepaid purchase card issued by any of the following financial institutions is exempt from Part XX of the Act and regulations made under that Part: (a) a bank listed in Schedule I, II or III of the Bank Act (Canada); (b) a company, as defined in section 2 of the Trust and Loan Companies Act (Canada); (c) a retail association, as defined in section 2 of the Cooperative Credit Associations Act (Canada); (d) a company or foreign company as defined in subsection 2(1) of the Insurance Companies Act (Canada). M.R. 13/2021 Limit on fees 2(1) No supplier shall charge a fee to the holder of a prepaid purchase card for anything in relation to the card, except in the following cases: 1. A supplier may charge a fee for replacing a lost or stolen prepaid purchase card or to customize a card. 2. A supplier may charge a fee in relation to a prepaid purchase card if the card was not issued or sold for cash or other consideration. 3. [Repealed] M.R. 194/2015 . 2(2) If a supplier has charged a fee in contravention of this section, the holder of a prepaid purchase card is entitled to a refund of the payment, and may demand the refund by giving notice to the supplier within one year after the fee is paid. M.R. 194/2015 Information requirements 3(1) At the time a prepaid purchase card is issued or sold, the supplier shall give the following information to the holder: (a) all restrictions, limitations and conditions that the supplier imposes on the use of the card, including any permitted fee or expiry date; (b) a description of the way in which the holder can obtain information respecting the card, including any remaining balance. 3(2) The supplier of a prepaid purchase card must give the information required under subsection (1) clearly and in a way that is likely to bring it to the holder's attention. Expiry dates 4(1) The prohibition in subsection 171(1) of the Act (no expiry date) does not apply to a prepaid purchase card (a) that is issued or sold for a specific good or service; or (b) for which the holder provides nothing of value when the card is issued. 4(2) A prepaid purchase card with an expiry date, other than a card referred to in clause (1)⁠(a) or (b), shall be effective as if it had no expiry date. Administrative penalty 5(1) A notice of administrative penalty may be issued under subsection 136(1) of the Act if a person fails to comply with (a) subsection 171(1) of the Act (no expiry date); (b) section 172 of the Act (information to be provided); or (c) section 2 of this regulation (limit on fees). 5(2) The amount of an administrative penalty to be imposed on an individual is as follows: (a) first contravention 5(2.1) The amount of an administrative penalty to be imposed on a corporation is as follows: (a) first contravention 5(3) A notice of administrative penalty must be in the form provided for in the Consumer Protection Regulation , M.R. 227/2006 . M.R. 8/2015 Transitional 6 This regulation applies only to prepaid purchase cards issued or sold on or after the day this regulation comes into force. Review 7 Within 18 months after this regulation comes into force, the minister must (a) review the effectiveness of this regulation and, in the course of the review, consult with any persons affected by the regulation that the minister considers appropriate; and (b) if the minister considers it advisable, recommend to the Lieutenant Governor in Council that the regulation be amended. Coming into force 8 This regulation comes into force on the same day that The Consumer Protection Amendment Act (Prepaid Purchase Cards) , S.M. 2006, c. 27, comes into force.