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