Are you trading in Ontario, Canada? A new customer protection law is here and this is what it means for you

Whether you know it or not, the new consumer protection regulation that recently came into effect in Ontario, Canada could impact you! The new legislation prohibits the expiry of reward or loyalty points because of the amount of time that’s passed since they were earned. You can read more about it in these articles from the Government of Ontario and the Canadian law firm McCarthy Tétrault.

In response to the change, we’ve adjusted LoyaltyLion’s point expiry rule. Now, it’s possible to set your points so that they only expire due to a customers’ inactivity – rather than time elapsed.

What does customer inactivity mean?

The inactivity of your customers may vary depending on your store but, generally, it means if a customer hasn’t earned or spent points with you within a particular time frame.

What should my time frame be?

It’s entirely up to you. Just make sure you’re clear on the premise of your new rule.

Let’s look at an example where the time frame is set to be a year. If a customer’s points are due to expire on 1st February 2020, but they spend or earn points in May 2020, their total point balance expiry will reset to May 2021.

Does the date of point expiry change?

The date of point expiry will be taken from the last time a customers’ point balance changed – either because they’ve earned new points or redeemed their points for a reward. And, when their points expire, the customer’s point balance will return to zero.

What kind of engagement doesn’t count as customer activity?

Any other customer activity on your site that you do not gift points for – such as reading an email – will not qualify the customer as active. They need to be engaging in activities that will gift them points as outlined by your program.

I want the new rule included in my loyalty program, what do I need to do?

Below are some action steps we suggest you take to make sure your store is compliant with the Ontario Law:

  • To opt-in to this update, you need to contact our support team at support@loyaltylion.com with the subject line Ontario Law update followed by the name of your store
  • Once we’ve helped you implement the rule on your site, it’s then your responsibility to tell your customers about the change
  • We suggest updating your Terms of Service on your site to explain how your store and loyalty program will be adhering to the Ontario Law
  • If you choose, you can inform your customers directly in your marketing communications – such as email updates
  • Update the premise of your point expiry emails to fit your new rule

Want to learn more about the Ontario Law? Drop an email to our support team on support@loyaltylion.com and we’ll get your questions answered.

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