consumers Archives - Public Interest Advocacy Centre

Changes to Air Passenger Protection Rules weaken consumers’ rights: not cleared for takeoff

j.lawford — Mon, 24 Apr 2023 13:00:27 +0000

FOR IMMEDIATE RELEASE

OTTAWA, April 24, 2023 – The Public Interest Advocacy Centre (PIAC) reacted negatively to the announcement made today by the Minister of Transportation, Omar Alghabra, of proposed changes to the Air Passenger Protection Regulations (APPRs), saying the proposals weaken passengers’ rights by making their claims secret, blocking their access to full justice, and failing to remove airlines’ ability to claim routine safety exceptions to payment of claims, among other shortcomings.

“The Minister did not consult with Canadian consumers or air passenger protection advocates before proposing these ill-advised changes – so we won’t clear them for takeoff,” said John Lawford, Executive Director and General Counsel at PIAC. “Consumers shouldn’t support them either, because they will also give the Canadian Transportation Agency (CTA) too much discretion to determine new exceptions to passengers’ compensation claims and to change the claims process with administrative ‘guidelines’, and also the CTA may now allow air carriers caught breaking the rules to avoid fines by entering into compliance agreements,” he added.

The changes to the APPRs are found in the Government’s omnibus Budget Implementation Act bill, in Division 23. Such changes are often given little scrutiny in Parliamentary Committees due to the urgency of Budget implementation and the large size of Budget bills. Therefore PIAC called upon the Standing Committee on Transport, Infrastructure and Communities (TRAN) to study the Budget Implementation Act Bill and to recommend major amendments, or, simply the remove the Minister’s proposed APPR changes from the Bill.

“We are disappointed the Government did not see fit to simply pass Bill C-327, ‘An Act to amend the Canada Transportation Act (air passenger protection)’, introduced by MP Taylor Bachrach,” added Lawford. “That Bill would change Canada’s air passenger protection law to mirror that in Europe, which is the gold standard.”

For more information please contact:

John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×125
jlawford@piac.ca
https://www.piac.ca/

social: @CanadaPIAC

— 30 —

The post Changes to Air Passenger Protection Rules weaken consumers’ rights: not cleared for takeoff appeared first on Public Interest Advocacy Centre.

Next Steps on the Loyalty Points Story

piac_admin — Thu, 19 Jan 2017 15:22:47 +0000

During the last six months of 2016, there was much discussion about the plan by Air Miles to let miles five years or older expire starting January 1, 2017. However, in December, the Ontario Legislature passed Bill 47, Protecting Rewards Points Act, prohibiting the expiry dates on reward points programs based on time alone in Ontario. This led many to conclude this story is over. However, for consumers, and especially those Canadians with loyalty point balances, what happens next may be just as important as the passage of the bill.

So What Happens Next?
The Government of Ontario plans to consult with the public and businesses to develop regulations aimed at protecting consumers’ points while maintaining the viability of rewards programs. No details have been announced regarding the timing or the format of this consultation process.

Photo courtesy of Steve Buissinne

Why is This Important? Three Words: The Fine Print
Just like the terms and conditions of your loyalty program membership agreement, the fine print of Bill 47 had unexpected surprises for Ontario consumers. The bill amends the Ontario Consumer Protection Act to allow the Lieutenant Governor in Council (i.e. Cabinet) to make regulations “governing the transfer of rewards points among consumers, including upon death.”
What does this mean? Currently, policies regarding the transfer of loyalty points are determined by loyalty program providers. Some loyalty programs, such as the Shoppers Optimum Program, allow the transfer of points between members free of charge. Others, such as Aeroplan and WestJet Rewards, charge a fee to transfer, while several programs prohibit the transfer of points altogether.

Loyalty program providers appear to hold all the cards when it comes to terms and conditions of their programs (Photo courtesy of Piotr Lohunko)
A similar potpourri of policies apply upon the death of a loyalty program member. Some loyalty programs allow the transfer of points to a loved one while others simply close the account. The bottom line is these policies are largely dictated to consumers by loyalty program providers. However, the impending consultation and the creation of regulations by the Government of Ontario may change that. This could benefit Ontario consumers in particular and by extension consumers across Canada.

PIAC’s Position?
In 2013, in a report entitled, “Customer Loyalty Programs: Are Rules Needed?”, PIAC discovered there were a number of consumer irritants associated with loyalty programs. PIAC concluded that industry-wide guidelines were required relating to loyalty currency transfers and bequeathal. Moreover, PIAC called for the creation of a complaints body for consumers on issues that arise relating to the operation of loyalty programs.
As a result of the Bill 47, the Ontario Ministry of Government and Consumer Services may have just become the loyalty program complaints body that PIAC requested. In addition, any future regulations regarding the transfer and bequeathal of loyalty points may answer PIAC’s call for industry-wide guidelines.

What’s the Catch?
The catch is that the Government of Ontario is not legally compelled to do anything. The relevant clause of the Ontario Consumer Protection Act amended by Bill 47 states the Lieutenant Governor in Council (i.e. Cabinet) may make regulations regarding the transfer and bequeathal of loyalty points. While it certainly appears the Ministry of Government and Consumers Services intends to create regulations, the Ministry could theoretically walk away from this exercise at any time.

Photo courtesy of Negative Space

What Can Consumers Do?
PIAC believes all loyalty programs should operate under the same rules regarding the transfer and bequeathal of loyalty points. Whether or not you agree with this statement, the Government of Ontario is providing a ground-breaking opportunity for consumers to comment on loyalty program policies with the potential to make them better for consumers. As a result, consumers can bring any loyalty program issue they feel is important before the Ministry of Government and Consumers Affairs or your Member of Provincial Parliament (M.P.P.) for their consideration.
PIAC encourages Ontarians and all Canadians to send a message to the Government of Ontario expressing the need for new regulations on loyalty currency transfers and bequeathal. In addition, PIAC believes the Government of Ontario should further examine those loyalty program issues identified by consumers during this consultation process.

The Ontario Ministry of Government and Consumers Services can be reached by clicking here.
Here is a list of Members of Provincial Parliament

Make sure the Government of Ontario follows through on its plan to consult and to develop regulations aimed at protecting consumers’ loyalty points.

Jonathan Bishop has been a Research Analyst with the Public Interest Advocacy Centre (PIAC) since 2012. He is the author of PIAC’s 2013 study of customer loyalty programs in Canada entitled, “Customer Loyalty Programs: Are Rules Needed? The report noted consumers have little recourse when loyalty program providers unilaterally decide to devalue their loyalty currency, or change other terms and conditions of loyalty programs. PIAC advocated for industry-wide guidelines relating to loyalty currency devaluation, transfers and bequeathal. Moreover, the report called for the creation of a complaints body for consumers on issues that arise relating to the operation of loyalty programs, as well as guidelines for the notice given to changes in loyalty program terms and conditions.

The post Next Steps on the Loyalty Points Story appeared first on Public Interest Advocacy Centre.

Time to Check-Out of Loyalty Program Rewards?

piac_admin — Wed, 09 Sep 2015 13:33:17 +0000

It has been taken for granted that Canadians love their loyalty rewards. 89% of Canadians are members of a loyalty program and the average Canadian participates in 8 different loyalty schemes. However, not all may be as rosy as loyalty program marketers may have you believe.
A recent survey released by loyalty program provider Aimia reveals Canadians are becoming increasingly concerned with the data companies are collecting about them. For instance, 83% of Canadians surveyed said they want more control over what data companies hold about them, while 20% have closed accounts or subscriptions over concerns about how their personal information was being managed. Surprisingly, only 8% of Canadians surveyed feel they are actually receiving better offers as a result of sharing their details.
Part of the reason for this apparent consumer frustration is a sense that it simply is not worth it anymore. For some Canadians, the benefit of obtaining a reward in exchange for their data is no longer as apparent. No doubt, some of this frustration has been caused by loyalty program providers themselves.
For instance, the popular SCENE program offered by Cineplex recently amended their terms and conditions. After November 4, 2015, general admission movies will still cost 1,000 SCENE points, but premium movies such as 3D or Imax, will cost 1,500 points, and VIP tickets will cost 2,000 SCENE points. Until now, SCENE members can gain free tickets to any general admission, premium or VIP movie if they have saved 1,000 points. Cineplex also plans to boost the number of SCENE points awarded for each premium movie ticket purchased to 150 points and for VIP movies to 200 points.
The result is that current SCENE members who have been saving their points for a VIP ticket are about to have the value of their loyalty currency cut by 50%. PIAC, as outlined in a 2013 report entitled “Customer Loyalty Programs: Are Rules Needed?”, believes the devaluation of loyalty currency is an ongoing issue for consumers.
Canadians live in an era where one can pay a portion of their student loan with loyalty points. Some Canadians will soon be able to earn loyalty points from the government for joining a gym or getting a flu shot. Since governments are beginning to get involved in the distribution of loyalty currency, perhaps it’s time for decision-makers to consider protecting Canadians from drastic cuts to the value of their hard-earned loyalty currency.
Perhaps now, rules are needed.

The post Time to Check-Out of Loyalty Program Rewards? appeared first on Public Interest Advocacy Centre.