From groceries to holiday gifts, loyalty points from programs like PC Optimum can shave a real chunk off your bill. But proposed changes to Ontario’s consumer protection laws have some people wondering whether all those points are in danger.
The Ford government says shoppers shouldn’t worry, saying Bill 46 – the Protect Ontario by Cutting Red Tape Act – actually strengthens protections by forcing companies to explain why points disappear and giving consumers more ways to fight back.
“Businesses right now will have to respond when someone asks for their points back,” said PC MPP Stephen Crawford during Question Period in the legislature on Wednesday. “If your points were frozen, cancelled, or disappear, the company now will have to respond. And for the first time ever, consumers will have the right to take legal action against the company if they unilaterally take away your points.”
But opposition MPPs say the bill also removes a major safeguard, one that currently blocks companies from expiring points just because time passes.
“Protecting rewards points is not red tape. People are already stretched thin. Grocery prices are up, and housing is still unaffordable. People are losing their jobs, and young people are looking for work. These points are one of the few small breaks that people get, so instead of relief in our Christmas stockings, you’re giving us a lump of coal,” said Liberal MPP Rob Cerjanec.
Others are questioning why the government is giving itself the power to set new rules around when points can expire and whether that opens the door to future changes.
“Their bill deletes the loyalty point protections from the Consumer Protection Act. They then put a provision that says cabinet, through regulation, can make future regulations around the expiry of loyalty points. So if you don’t intend to change the regulations to allow loyalty points to expire, why would you give yourself that power?” asked Liberal MPP Stephen Blais.
Retail experts say most big brands would think twice before bringing back expiry dates, but warn that uncertainty alone can shake consumer trust. They point to programs like Air Miles, which received major backlash after it tried to bring in a time-based expiry for points several years ago.
“I don’t even think the big brands would mess with the expiry dates,” said retail analyst Bruce Winder. “There could be some niche brands who want to do it in some cases. But, I think they really should rethink it because consumers, when you take something away from a consumer, they get angry.”
A spokesperson for Loblaws tells CityNews that at this time, points in its PC Optimum program don’t expire as long as the account is active, and if those rules ever change, it will communicate clearly and early with its members so they always know what to expect.
