Update to Québec’s Proposed Loyalty Program Rules
In a previous bulletin Ontario and Québec Set to Update Legal Requirements on Loyalty Programs, we highlighted the recent legislative changes regarding loyalty/rewards programs that have been implemented in Ontario and confirmed in Québec. Ontario’s rules on loyalty programs and associated regulations came into force on January 1, 2018, with a retroactive effect to October 1, 2016. The significant detail of the Ontario rules is that they prohibit rewards points from expiring due to the passage of time alone. However, the Ontario rules provide an exception permitting the expiry of rewards points due to account inactivity.
Québec has recently updated the proposed loyalty program rules. Québec’s proposes an exception based on account inactivity which mirrors Ontario’s, albeit with certain differences. You can read BLG’s bulletin on this topic here.
Businesses offering loyalty points to consumers in Québec and Ontario will appreciate the harmonization of this exception, but must be cautious in structuring and overseeing their loyalty programs so as to comply with each province’s rules. As the draft Regulations have only just been proposed, it is uncertain if they will be approved in their entirety or revised prior to their coming into force, which has yet to be confirmed. We will continue to monitor legislative developments in Québec.
This content has been updated on June 2, 2018 at 8 h 21 min.