The Canadian loyalty point expiry debate

Loyalty programs have become a staple of the retail industry, with many businesses offering rewards points, miles, or other incentives to customers who make purchases or engage with their brand. These programs are often popular with consumers, who can redeem their points for discounts, free merchandise, or other perks. However, the practice of points expiry has sparked debate and controversy in Canada, with some arguing that it is unfair to consumers and others defending it as a necessary business practice.

In Canada, there are currently no federal laws that regulate the expiry of loyalty points. This means that each individual business is free to set its own rules for how long points remain valid and how they can be redeemed. Some businesses have generous expiry policies, allowing points to remain valid for several years or even indefinitely. Others have much stricter policies, with points expiring after only a few months or even weeks.

This lack of regulation has led to criticism from consumer advocates, who argue that points expiry is a form of bait-and-switch marketing. Consumers are often lured into signing up for loyalty programs with the promise of rewards, only to find that their points have expired before they have had a chance to redeem them. This can be especially frustrating for customers who have earned a large number of points but are unable to use them due to expiry.

In response to these concerns, some Canadian provinces have proposed legislation to regulate points expiry. In Ontario, for example, the province's Ministry of Government and Consumer Services has introduced the Consumer Protection Amendment Act (Loyalty Points), which would require businesses to clearly disclose their points expiry policies and to allow customers at least two years to redeem their points. This legislation has been welcomed by consumer advocates, who argue that it will help to protect consumers from unfair points expiry practices.

However, not everyone is in favor of regulating points expiry. Businesses argue that points expiry is necessary in order to keep loyalty programs financially viable. Without the ability to expire points, they argue, loyalty programs would quickly become unsustainable, as businesses would be unable to manage the costs of fulfilling rewards. In addition, some businesses argue that points expiry encourages customers to engage with their brand more frequently, leading to increased sales and revenue.

The debate over loyalty point expiry in Canada is likely to continue, with both consumers and businesses seeking to protect their interests. In the meantime, it is important for consumers to carefully read the terms and conditions of any loyalty program they join, in order to understand the rules for points expiry and redemption. By being informed, consumers can make more informed decisions about which loyalty programs are right for them and can avoid being caught out by unexpected points expiry.