WestJet's flight credits don't follow same rules as gift cards, B.C. court rules

Flight credits distributed by WestJet don't have the same flexibility as gift cards and can have expiration dates, according to a recent ruling from B.C.'s Court of Appeal.

The decision, posted Wednesday, determined "travel bank credits" don't have to follow the same regulations as "prepaid purchase cards" or "gift cards." The ruling explained the flight credits are typically issued for cancelled flights, lost luggage and general customer dissatisfaction.

In WestJet's case, the credits expire after a year, but can sometimes be extended for a $20 fee.

The court heard Tiana Sharifi got nearly $1,000 in credit after she bought a ticket for a flight, then voluntarily cancelled it. Sharifi used about $570 of the credit, but the remaining $420 expired after a year.

Sharifi argued that the credits count as a gift card and that consumer protection legislation prohibits WestJet from setting an expiration date. She applied to have the matter certified as a class action, which it was in October 2020.

WestJet then appealed the certification, arguing the credits aren't considered gift cards because they are issued as a refund, to compensate for an inconvenience or used as a promotional tool. When they're issued for a refund, WestJet argued, they function as "store credit," which isn't covered by prepaid purchase card laws.

"In my view, the issue is not whether Ms. Sharifi prepaid her ticket to travel with WestJet: she clearly did. Rather, the question is whether, in consideration for her 'non refundable ticket,' she prepaid a fixed amount for (travel credits), which she had the right to use in the future. In my view, she clearly did not," Justice Patrice Abrioux wrote in his decision.

"Ms. Sharifi purchased a prepaid flight. She did not purchase a prepaid purchase card, gift card, gift certificate or otherwise."

As a result, Abrioux said Sharifi's flight credits "do not fall within the definitions contained in the relevant consumer protection legislation" and WestJet's appeal was permitted, dismissing Sharifi's case.