Ontario will Ban the Expiration of Reward Points

9 décembre 2016 | Catherine Bate, Eugenia (Evie) Bouras

( Disponible en anglais seulement )

On December 8, 2016, legislation to ban the expiration of reward points received Royal Assent in Ontario. While not yet proclaimed into force, Bill 47 –  Protecting Reward Points Act (the “Act”) will amend Ontario’s Consumer Protection Act, 2002 (the “CPA”) to prohibit expiry of consumer reward points based on the passage of time alone, and will render void any provision to the contrary in a consumer agreement.

Consumer frustration was widely reported over the plans of some large loyalty program providers to amend their program terms and have reward points expire over time.  The first legal responses came in the form of consumer class actions filed against each of Pharmaprix, Aeroplan and LoyaltyOne in recent years (without a final adjudication against any company).  Bill 47, a private member’s bill, was first introduced in October but quickly picked up momentum to pass in under two months.

The Act will amend the definition of consumer agreement under the CPA to capture contracts where a supplier provides reward points to a consumer who purchases certain goods or services.  It provides for two possible scenarios under which reward points may expire: (i) with notice to the consumer , at termination of the program in accordance with the program’s terms; or (ii) where there is a reason for expiry in addition to just the passage of time. Both will be the subject to limitations imposed by regulations, on which consultation is expected early in 2017.

Notably, the Act will have retroactive effect.  Points that expire after October 1, 2016 must be reinstated to the consumers within 15 days of the Act’s coming into force.

If you have questions on how this Act will impact your business, or if you are interested in participating in the anticipated consultation process on the regulations, contact Catherine Bate.

Avis de non-responsabilité

Cette publication est fournie à titre informatif uniquement. Elle peut contenir des éléments provenant d'autres sources et nous ne garantissons pas son exactitude. Cette publication n'est ni un avis ni un conseil juridique.

Miller Thomson S.E.N.C.R.L., s.r.l. utilise vos coordonnées dans le but de vous envoyer des communications électroniques portant sur des questions juridiques, des séminaires ou des événements susceptibles de vous intéresser. Si vous avez des questions concernant nos pratiques d'information ou nos obligations en vertu de la Loi canadienne anti-pourriel, veuillez faire parvenir un courriel à privacy@millerthomson.com.

© 2023 Miller Thomson S.E.N.C.R.L., s.r.l. Cette publication peut être reproduite et distribuée intégralement sous réserve qu'aucune modification n'y soit apportée, que ce soit dans sa forme ou son contenu. Toute autre forme de reproduction ou de distribution nécessite le consentement écrit préalable de Miller Thomson S.E.N.C.R.L., s.r.l. qui peut être obtenu en faisant parvenir un courriel à newsletters@millerthomson.com.