With loyalty programs like PC Optimum offering consumers significant savings on groceries and holiday gifts, recent proposed changes to Ontario's consumer protection laws are raising concerns about the safety of these points. The Ford government, however, reassures shoppers that these changes will enhance protections rather than diminish them.
Introduced as Bill 46, the Protect Ontario by Cutting Red Tape Act is touted by government officials as a measure that will require companies to provide explanations when loyalty points are lost or vanish. According to PC MPP Stephen Crawford, businesses will now be obligated to respond if customers inquire about their points being frozen, canceled, or disappearing entirely. Additionally, for the first time, consumers will have legal recourse against companies that arbitrarily withdraw loyalty points.
Despite these assurances, opposition MPPs have voiced strong criticisms of the bill, emphasizing a significant risk factor: the elimination of a crucial safeguard that currently prevents companies from expiring loyalty points simply due to the passage of time. Liberal MPP Rob Cerjanec articulated the frustration of consumers, asserting, “Protecting rewards points is not red tape. People are already stretched thin.” He pointed out the ongoing struggles with rising grocery prices, unaffordable housing, and job losses, stressing the importance of loyalty points as a small respite for consumers, especially during the holiday season.
There are further concerns regarding the government’s new authority to establish rules governing when loyalty points can expire, which may imply potential future alterations. Liberal MPP Stephen Blais raised inquiries about the rationale behind giving the cabinet the discretion to amend regulations related to loyalty points expiry. He questioned the intention of such provisions, asserting, “So if you don’t intend to change the regulations to allow loyalty points to expire, why would you give yourself that power?”
Experts in retail suggest that most established brand names would hesitate to adopt expiry dates for loyalty points, yet they caution that the mere introduction of uncertainty could undermine consumer trust. They reference the backlash faced by programs like Air Miles when they previously attempted to implement a time-based expiry on points. Retail analyst Bruce Winder remarked, “I don’t even think the big brands would mess with the expiry dates.” He warns that while niche brands may consider such changes, they should carefully reconsider, as taking away benefits can lead to consumer anger.
In response to the ongoing concerns, a spokesperson for Loblaws clarified that the PC Optimum program currently does not impose expiry dates on points as long as the account remains active. They committed to providing clear and timely communication to members if any changes are anticipated in the future, ensuring that consumers know what to expect regarding their loyalty points.
