Promises of free trips, items or even cash have made reward programs popular among Canadians but some rewards go down the drain if they’re not used before a certain period of time.
For the first time, Air Miles points that are more than five years old will expire at the end of 2016, and cardholders have been scrambling to use their miles.
READ MORE: Mounting frustration as Air Miles expiry deadline looms
The expiring points have prompted a lawsuit as well as a private member’s bill in the Ontario legislature as consumers try to hold on to their points.
“People were expressing concern … so I thought I’d do something about it,” said MPP Arthur Potts, who introduced the private member’s bill. “People have got equity in their reward miles, reward points, and that can’t be taken away without their consent.”
“I just think it’s fundamentally wrong.”
So why are the points expiring? In part, because it saves the company money. When loyalty programs walk away from having to pay out rewards promised to consumers, they not only save the value of the rewards, but also the costs associated with the transaction and potential shipping charges.
Air Miles isn’t the only program with expiring points. Here’s an outline of some other reward programs that have expiry policies, or special conditions to keep accounts active and points intact.
Use them or lose them
Aeroplan points will expire after an account has been inactive for 12 months. If collectors don’t stay active by collecting or using Aeroplan miles for more than a year, any accumulated points will disappear.
To stay active, users can redeeming miles for a flight, donate points to a charity partner, or transfer the points for a fee. Cardholders (you can order a new card here) can also stay active by collecting points from retail partners.
Shoppers Optimum Program also has a 12-month activity policy on its points.
“Should any Shoppers Optimum Member not acquire Shoppers Optimum Points for 12 consecutive calendar months, the membership will be deemed to be inactive and all accumulated Shoppers Optimum Points will be forfeited,” the website for Shoppers Drug Mart’s reward program states.
Upon a cardholder’s death their points will also disappear. Points will not be divided in the case of divorce.
Hudson’s Bay Rewards also requires its cardholders to stay active within a 12-month period, as does Petro Points.
PC Points offers its collectors a two-year activity window before accounts are shut down.
Scene memberships, popular among moviegoers, will also be deemed inactive after two years, and points will be forfeited.
Air Miles will also be lost after 24 months of inactivity.
What consumers should know
Every time a customer uses a reward program, they are giving a company incredibly valuable information. Tracking spending habits of its loyalty members can influence retailers’ ordering, product placement and even pinpoint locations for expansion.
Reward programs also offer companies a competitive edge.
“An effective loyalty program will help acquire new customers, retain existing customers, and get those program members to spend more over time,” said Jonathan Bishop, from the Public Interest Advocacy Centre (PIAC), in an email to Global News.
It’s always a good idea to read over your loyalty reward provider’s terms and conditions, so you know the restrictions and can keep your account active.
Air Miles users can request an expiry statement which tells them exactly how many of their miles will be expiring, and when. Air Miles cardholders can also opt into the cash rewards option, which allows future miles to be used toward everyday purchases at participating retailers.
READ MORE: Air Miles adjusts rewards program as lawsuit looms
Potts said he wants to see these burdens lifted from reward program members in Ontario and beyond, and encouraged consumers to get vocal.
“I’m hoping that we will have a bill passed that will not allow Air Miles to expire points in Ontario,” said Potts. “And if other jurisdictions want to pick up on that approach, I will do whatever I can to assist them.”
SOUND OFF: Have you struggled to use your rewards program points before they expire?
Note: We may use your response in this or other stories. While we may contact you to follow up we won’t publish your contact info.