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“Bill 47 Protecting Rewards Points Act: Will rewards points become more rewarding for Ontario consumers?”

Osler’s Andraya Frith and Christine Jackson provide an overview of Ontario Private Member’s Bill, Bill 47, Protecting Rewards Points Act (Consumer Protection Amendment), 2016.

According to the Ontario Legislature,

The Bill amends the Consumer Protection Act, 2002 with respect to rewards points.  The definition of a “consumer agreement” is amended to include agreements under which rewards points are provided.  A new section is added that prohibits consumer agreements from allowing the expiry of rewards points. Rewards points are allowed to expire when the consumer agreement is terminated, unless it provides otherwise. Any rewards points that expired on or after October 1, 2016 are credited back to the consumer on the day the section comes into force.”

Frith and Jackson explain that

“The most obvious impact the Bill would have on retailers and companies with rewards programs is the prohibition on allowing the expiry of rewards points. The less obvious impact is the inclusion of Loyalty Agreements in the definition of “consumer agreement” under the CPA. Currently, rewards programs are not expressly regulated under the CPA; however, these programs are subject to the provisions of the CPA regulating “consumer transactions” (e.g., the unfair practices provisions). If the Bill becomes law, Loyalty Agreements will also be subject to the provisions of the CPA regulating “consumer agreements,” which, depending on the structure of the rewards program, could include the provisions regulating future performance agreements, internet agreements, remote agreements and direct agreements.”

As of posting, the Bill has been referred to the Standing Committee on Justice Policy for review.

One Comment - Leave a Comment
  • marlene greenbury -

    removal of the expiry date for air miles has priority but allowing the transfer of ‘dream’ miles to ‘cash miles’ is also important in that nobody was given the option: air miles were just that, air miles. I’ve yet to find anyone who was informed. The merchandise shown is pathetic & in many cases show a $ cost, not miles. We & everyone affected intend to cut up our card; when you only collect 1 or 2 miles each time, it takes 5 or more years to accumulate. Totally disgusting and disloyal to those of us who patronized specific businesses – but no more!! Thank you.

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