Yes, a video store contract can expire, but there are restrictions. Some video stores enable people to take out a contract where they pay in advance for a certain amount of credits which the person can use to rent movies. The question is – can these credits expire? And if yes, after how long?
A video store contract can expire after three years
The law (section 63 and 64 of the Consumer Protection Act) is actually very clear on this issue. They can expire, but only after they have been redeemed or three years after they were issued. The person taking out the contract remains the owner of the money until then.
If your video store says that your contract has expired after say 12 months, they have infringed your fundamental consumer rights. It does not matter what the contract says. The law overrides the contract and your credits cannot expire for at least three years.
What action can you take against the video store?
As a consumer, there are various steps you can take. As a first step send the video store this article and ask the video store to reinstate your credits. If that fails, lay a complaint with the National Consumer Commission or the Consumer Goods or Services Ombud. The video store should be a participant with the Consumer Goods or Services Ombud.
