MANILA, Philippines — President Rodrigo Duterte has signed a new law prohibiting the issuance of a gift check that bears an expiry date, and imposing an expiry date on the stored value, credit, or balance of the gift check.

Duterte signed last December 19 Republic Act No. 10962, or An Act Regulating the Issuance, Use and Redemption of Gift Checks.

Under the fresh law, a copy of which was released by Malacañang on Friday, refusing to honor the unused value, credit, or balance stored in the instrument is likewise prohibited.

Violators of RA 10962 are obligated to return the unused balance of the gift check within 90 days from the declaration of the violation. They are also subject to a fine that in no case be less than P500,000 nor more than P1 million.

Meanwhile, gift checks that are issued to consumers including, but not limited to, those under loyalty, rewards, or promotional programs, as determined by the Department of Trade and Industry, are not covered by the new law.

“Upon effectivity of this ACT, all gift checks already issued shall be covered by the provisions of this Act,” the law said.

“It is the policy of the State to protect the interests of the consumer, promote the general welfare and establish standards of conduct for business and industry,” it added.