O. Reg. 388/17: GENERAL

Français

ontario regulation 388/17

made under the

Consumer Protection Act, 2002

Made: October 18, 2017
Filed: October 20, 2017
Published on e-Laws: October 20, 2017
Printed in The Ontario Gazette: November 4, 2017

Amending O. Reg. 17/05

(GENERAL)

1. Ontario Regulation 17/05 is amended by adding the following sections:

Consumer Agreements For Rewards Points

Definition of rewards points

43.1 (1) For the purpose of the definition of rewards points in section 1 of the Act, the consumer must earn the points across multiple transactions and accumulate them before being able to exchange them for money, goods or services and the points may be described as points, dollars spent or any other unit or similar term.

(2) Rewards points do not include rewards offers that propose to provide a consumer with one specific good or service or one specific set of goods or services after the consumer achieves a certain amount of progress if the goods or services are identified at the outset of the offer and they are not a gift card, voucher or similar item.

Non-application of Part IV of Act

43.2 In respect of a consumer agreement under which rewards points are provided, Part IV of the Act, except for section 47.1 of the Act, and the regulations made for the purpose of those provisions,

(a) do not apply to the portion of the consumer agreement that relates to the provision of rewards points; and

(b) apply to any portion of the consumer agreement that does not relate to the provision of rewards points.

Non-application of s. 47.1 of the Act, low value of reward

43.3 (1) Section 47.1 of the Act does not apply to consumer agreements under which rewards points are provided if no one good, one service or single set of goods or services that the consumer may receive in exchange for redeeming the points has a value of more than $50.

(2) The $50 limit on value described in subsection (1) is not exceeded if,

(a) the consumer can redeem points for more than one good, one service or a single set of goods or services; and

(b) none of the goods, services or single sets of goods or services that the consumer may receive has a value of more than $50 but the combined value of the goods, services and single sets of goods or services that the consumer may receive is more than $50.

(3) The $50 limit on value described in subsection (1) is exceeded if,

(a) a good or service that the consumer may receive in exchange for redeeming points is a gift card, voucher or similar item that can be combined with other gift cards, vouchers or similar items; and

(b) the consumer can redeem any combination of the gift cards, vouchers and similar items described in clause (a) to pay in whole or in part for a single good, service or set of goods or services with a value of more than $50.

(4) Nothing in this section prevents sections 23 and 25.1 to 25.5 of this Regulation from applying to a consumer agreement to which section 47.1 of the Act applies.

Non-application of s. 47.1 of the Act, no purchase required

43.4 (1) Section 47.1 of the Act does not apply to a consumer agreement under which the consumer is not required to purchase goods or services from the supplier with whom the consumer has entered into the agreement or from a third party, either upon entering into the agreement or during the entire term of the agreement, including to earn rewards points.

(2) Despite subsection (1), section 47.1 of the Act applies to a consumer agreement if,

(a) rewards points are provided to the consumer under the agreement, either directly by the supplier with whom the consumer has entered into the agreement or indirectly by a third party; and

(b) the supplier or third party described in clause (a) has entered into at least one other consumer agreement with any consumer that requires the consumer to purchase goods or services to earn rewards points.

Non-application of s. 47.1 of the Act, no control of rewards points

43.5 (1) Section 47.1 of the Act does not apply to a consumer agreement under which rewards points are provided if the supplier under the agreement does not direct or control the expiry of the rewards points.

(2) Despite subsection (1), section 47.1 of the Act applies to a consumer agreement under which rewards points are provided if the supplier under the agreement has entered into an agreement with another person who directs or controls the expiry of the rewards points for the supplier.

Expiry of rewards points due to the passage of time alone

43.6 (1) For the purposes of subsection 47.1 (1) of the Act, the expiry of rewards points due to the passage of time alone means that the points expire based solely on when a certain point in time is reached or when a certain amount of time has elapsed.

(2) Despite subsection 47.1 (1) of the Act, a consumer agreement under which rewards points are provided may provide that the points expire in accordance with the agreement if the consumer has not earned or redeemed points during a specified period of time.

(3) Despite subsection 47.1 (1) of the Act, if the consumer under a consumer agreement under which rewards points are provided is required to purchase goods or services from either the supplier with whom the consumer has entered into the agreement or from a third party in order to earn rewards points and if the supplier or third party, as the case may be, gratuitously issues or offers to issue rewards points to the consumer unrelated to any purchase of goods or services by the consumer, the agreement may provide that the gratuitous points expire due to the passage of time alone if,

(a) the supplier gives notice to the consumer when issuing or offering the points that the points or offer of points will expire due to the passage of time alone; and

(b) the expiry occurs no later than 30 days after the date on which the points were issued or offered.

(4) Subject to this section, a consumer agreement under which rewards points are provided contravenes subsection 47.1 (1) of the Act if it provides that points expire due to the passage of time alone unless the consumer actively requests that the points not expire or that they be reinstated.

Termination of consumer agreement

43.7 For the purposes of section 47.1 of the Act, if the supplier under a consumer agreement under which rewards points are provided terminates the portions of the agreement that relate to rewards points, but not the portions of the agreement that do not relate to rewards points, such a termination constitutes a termination for the purpose of the section.

Credit back of rewards points

43.8 (1) The credit back obligation in subsection 47.1 (5) of the Act applies only to rewards points that expired in the time period described in that subsection due to the passage of time alone.

(2) Subsection 47.1 (6) of the Act does not apply to a consumer agreement described in that subsection if,

(a) the consumer under the agreement has requested that the supplier terminate the agreement and the supplier has done so;

(b) before October 1, 2016, the supplier under the agreement gave notice to the consumer that the agreement was going to terminate and the agreement terminated before that subsection came into force; or

(c) the agreement has been terminated in accordance with its terms and the terms relating to rewards points have not been amended after October 1, 2016.

(3) For greater certainty, subsection 47.1 (6) of the Act only applies to those provisions of a consumer agreement relating to rewards points.

(4) Subsections 47.1 (5) and (6) of the Act do not apply to a consumer agreement under which rewards points are provided if the supplier providing points gave notice, before December 8, 2016, to the consumers that the entire program for providing rewards points that is associated with the consumer agreement was being wound up.

Reinstated or recreated consumer agreement

43.9 (1) Subsection (2) applies if a supplier terminates a consumer agreement under which rewards points are provided and, within 12 months,

(a) the supplier purports to reinstate the agreement or enter into a new consumer agreement with the consumer that is substantially similar to any previously terminated consumer agreement between them under which rewards points were provided; and

(b) the supplier purports to enter into the reinstated or new agreement described in clause (a) without the consumer’s explicit consent at the time the supplier purports to enter into the reinstated or new agreement.

(2) The supplier shall credit back the consumer with at least the same number of rewards points the consumer had upon the termination of the consumer agreement that the supplier terminated under subsection (1).

(3) For greater certainty, if the supplier receives the consumer’s explicit consent to enter into the reinstated or new agreement described in clause (1) (a) at the time described in clause (1) (b), the supplier is not required to comply with subsection (2) and the rewards points that the consumer had upon the termination of the consumer agreement expire if the terminated agreement so provided.

Commencement

2. This Regulation comes into force on the latest of,

(a) the day subsection 2 (1) of the Protecting Rewards Points Act (Consumer Protection Amendment), 2016 comes into force;

(b) January 1, 2018; and

(c) the day this Regulation is filed.

 

Français