Press Release
Ontario is protecting consumers from losing reward points based only on the amount of time passed since they were earned.
Beginning Jan. 1, consumers will be protected against losing reward points they have been saving up for larger purchases, and the change will be retroactive to Oct. 1, 2016.
Consumers who believe their points expired improperly will be able to request that businesses reimburse them, or they may file a complaint with Consumer Protection Ontario.
“These are important new ground rules that preserve the points consumers have built up over time,” said Governmentand Consumer Services minister Tracy MacCharles.
“Many people save their points for years to use toward a large purchase,” she noted.
“That has real value and should be protected.”
“Reward point programs have become an important tool for businesses to engage consumers in ways that build trust and loyalty for their brands,” said Wally Hill, vice-president, Government & Consumer Affairs, Canadian Marketing Association.
“The Canadian Marketing Association is pleased to see a balanced framework of rules that will reassure points collectors without creating unnecessary program restrictions in a fast-moving and competitive marketplace,” he added.
The province examined the terms of more than 50 different programs when drafting the regulations.
If a reward points program issues vouchers, they will be considered as gift cards and won’t be allowed to expire.
If a member does not earn or redeem reward points over a long period of time, some rewards programs close accounts due to prolonged inactivity.
This will continue to be permitted if it is stated explicitly in the membership agreement.
Reward programs dealing only with low-value items of $50 or less will be exempt.
Banning the expiration of reward points is one of a number of changes the province has proposed to increase protection for consumers, including:
•adding new protections for new home warranties and condo owners;
•strengthening rules and professional standards in the real-estate sector;
•increasing transparency in travel services pricing; and
•preventing event ticket fraud and excessive mark-ups in ticket re-sales.
