08 Mar Ontario’s New Protection Rewards Points Act Helps Consumers Rack Up Points….and Keep Them
How long have you been waiting to go on that dream vacation with all those Air Miles you’ve collected over the past years? 5 years? 10 years? Maybe even 15 years! Let’s not even address that sinking feeling when you realize they expire before you could even save up for something worthy. Well, there may be hope for those of you madly collecting points, miles and rewards with no sign of redemption. Liberal MPP Arthur Potts has introduced Ontario’s new Protecting Rewards Points Act.
Put into effect of early December 2016, the new law has eliminated expiry dates on loyalty programs as well as on Air Miles that consumers lost after October 1st 2016. With that being said, Air Miles had much more than expiring miles to rectify.
Air Miles consists of two categories: cash rewards and dream rewards. Cash rewards can be used towards groceries or gas while dream ones can be used for travel, however, these rewards cannot be transferred between categories. The company itself would depend on the different between these two categories for profit as the value would decrease over time. Each cash reward is valued roughly at 10.5 dents and dream rewards at 13-15 cents. With the new Protection act, these rewards will no longer devalue, meaning more rewards for consumers.
Although Ontario is the only province to introduce the Protection Rewards act, it is inevitable that other provinces and companies will soon follow suit. Starbucks has announced that their rewards will no longer have an expiry date in Ontario, along with West Jet, Talbots and Lufthansa.
With that being said, consumers shouldn’t forget that loyalty programs will always work two ways. The fine print? Some rewards will expire due to inactivity or time passing. Air Miles has applied a two-year rule, as to avoid people not using their account yet hoping to reap the benefits.
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