The Ontario Liberals are warning the Doug Ford government is poised to make changes to consumer legislation that could allow rewards points to expire.
Proposed changes to the Consumer Protection Act contained in the government’s Bill 46, the “Protect Ontario by Cutting Red Tape Act,” would repeal a measure introduced in 2016 that prevented reward points from expiring “due to the passage of time alone.”
The Ford government denies that the change would allow rewards points to expire, saying the changes would actually add more consumer protections.
Speaking during Question Period at Queen’s Park on Monday, interim Liberal Leader John Fraser said the premier was “sneaking through legislation that will allow everyday Ontarians’ reward points to expire, favouring big corporations over everyday Ontarians.”
Doug Ford’s Minister of Public and Business Service Delivery and Procurement Stephen Crawford denied the claim, telling the Legislature, “nothing in the bill makes it easier to take away reward points — full stop.”
According to the bill, Section 47.1 of the Consumer Protection Act would be repealed. This section contains changes introduced in 2016 by the Protecting Rewards Points Act, forbidding businesses from allowing rewards points to expire due to the passage of time alone.
If passed, the law would stipulate that “a consumer agreement under which rewards points are provided shall not provide for the expiry, cancellation or suspension of rewards points except in accordance with the regulations,” Schedule 5 of the bill reads.
Stephen Blais, MPP for Orléans and Liberal Consumer Protection Advocate told the Star that while the law currently does not allow rewards points to expire, the new law would allow cabinet to create rules under which they could expire.
“Why would the government give itself power to do that if it hadn’t thought about doing it, or someone wasn’t asking them to do it?” Blais said.
It can take time for consumers to accumulate enough points to make a significant purchase, so allowing points to expire quickly, or at all, “devalues” them, Blais added.
“It’s really a backdoor tax increase on middle-class families who use these points to supplement their family budgeting, especially in these tough economic times, and especially this time of year,” he said.
He noted that the Protecting Rewards Points Act was introduced by Liberal MPP Arthur Potts and passed in December 2016 with unanimous support.
“In 2016, it was a bit of a Christmas miracle,” Blais said. “In 2025, it looks more and more like the Grinch sneaking into Whoville to steal everyone’s Christmas presents.”
When reached for comment Tuesday, Ford’s press secretary Hannah Jensen said Minister Crawford was “very clear” during Monday’s Question Period, and his comments could be taken as a statement from the Ontario government.
“Nothing in the Bill makes it easier for companies to take away reward points,” Jensen said. “Our government has repeatedly taken action to strengthen consumer protections, and we will continue to do just that.”
During Question Period, Crawford said the government wants to make sure people in Ontario “keep every dollar they earn in their reward points with confidence” and “new protections are actually going to protect those further.”
“Businesses will have … to respond when someone asks for their points back. If your points were frozen, cancelled or disappeared, companies will now have an obligation to respond back to that, and for the first time ever, you will have the opportunity to take legal recourse,” Crawford said.
The bill notes, “a consumer may commence an action against a supplier of rewards points to recover the rewards points to which the consumer is entitled under this section.”
The bill goes to committee at Queen’s Park on Wednesday.
Retail analyst and adviser Bruce Winder said any changes should protect consumer rights while also allowing businesses to reasonably manage expenses.
Winder said he believes rewards points should have a “reasonable lifespan” — whether five or 10 years, for example — so consumers have “more than enough time” to use them.
However, an infinite lifespan may not be ideal because “it’s hard to manage your business if you kind of have all this outstanding liability on points,” he said.
Additionally, changes should be “very loud and clear to the consumer” so they know exactly when their points expire and don’t unknowingly lose “umpteen-thousands points” they’ve collected.
Personal finance and travel expert Barry Choi, for his part, said individual loyalty programs in Canada are good at reminding customers to use their points, and he doesn’t believe Canadian loyalty programs would “pull (points) away unfairly” because doing so would risk reputational damage.
He noted that after Air Miles said it would allow unclaimed loyalty points to expire after five years, the company received so much backlash that it backtracked on the plan.
