Retaining Loyalty Points

2nd March 2017 by admin

If you have ever collected loyalty rewards from a travel company one of the many irritations they cause, apart from never being able to redeem them for when you want to travel, is that the points expire after a period of time if they are not used or there is no activity on the account.

Not so if you live in Ontario. The provincial government there has just enacted legislation, the Protecting Rewards Points Act, to the effect that from December 6, 2016 contractual terms that state that points expire simply by the passage of time will be void and that points accrued after 1 October, 2016 will have to be reinstated if they had expired because of the passage of time.

However if there is another reason for their expiry, such as if the points agreement states that members must use their account (earn or redeem points) within two years and they do not, their points could expire because of the combination of time passing and inactivity.

The legislation will not come into force until later in 2017 which is to give time for consultation and the drafting of regulations. It is envisaged that the regulations could cover (i) the transfer of rewards points among consumers, including upon death, (ii) inactivity of rewards points, and (iii) the termination of rewards points programmes.

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