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Loyalty Shouldn't Have an Expiry Date

MPP Arthur Potts' Private Members' Bill Protects Consumers Rewards Points

FOR IMMEDIATE RELEASE                                                                       

October 20, 2016

                                                                                                           

Ontario is moving to stop the expiry of rewards points, clarifying consumer expectations regarding rewards programs and protecting consumers benefiting from such programs.

Earlier today, MPP Arthur Potts (Beaches-East York) introduced the Protecting Rewards Points Act 2016. If passed, the Bill would amend the Consumer Protection Act, 2002 with respect to rewards points, changing the definition of a “consumer agreement” to include agreements under which rewards points are provided, and ensuring that the rewards points collected by consumers – sometimes over many years, and often at extra expense – would not “expire”.

Key elements of the Bill include:

  • A new section would be added to the Consumer Protection Act 2002 that will prohibit consumer agreements from allowing the expiry of rewards points.
  • Rewards points will be allowed to expire when the consumer agreement is terminated, unless the agreement provides otherwise.
  • The changes would be retroactive; any rewards points that expired on or after October 1, 2016 would be credited back to the consumer on the day the section comes into force.

 

QUOTE:

“Protection of consumer rights is extremely important to the government. These changes to the Consumer Protection Act are a part of our ongoing commitment to ensuring consumers are treated fairly in the market and receive the benefits promised to them by corporate loyalty programs.”

-       MPP Arthur Potts, Parliamentary Assistant to the Minister of Environment and Climate Change

 

QUICK FACTS

  • While loyalty programs are highly popular in Ontario and Canada at large, there is currently no specific provincial legislation regulating them.
  • Many reward points programs require the disclosure of personal information by participants to corporations.
  • Loyalty programs can serve a number of purposes for corporations, including increasing customer loyalty, insight into purchasing behaviour, feedback on marketing efforts, and attracting new customers.
  • On average, consumers receive 2% return on participation in loyalty and rewards programs.

 

RESOURCES

 

 

 

For more information or Member availability:

David Bellmore, MPP Potts Office, 416-314-5454

 

 

 

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