The Government of Ontario introduced Bill 46, Protect Ontario by Cutting Red Tape Act, 2025 ("Bill 46") in June 2025, as part of the government's multi-year effort to reduce regulatory burdens. Some of the proposed amendments will have important effects on consumer protection laws in Ontario – more specifically, on businesses that offer consumer loyalty programs.
As we have detailed in prior bulletins, the Government of Ontario passed new consumer protection legislation in 2023 and consulted on regulations under that legislation earlier this year. Notwithstanding these efforts to introduce a new consumer protection regime in Ontario, the existing Consumer Protection Act, 2002 ("2002 Act")remains in force until detailed regulations are introduced and the Consumer Protection Act, 2023 is brought into force.
Bill 46, however, will amend the 2002 Actto address practical consumer-focused issues by introducing a new regime governing rewards points. Some of the proposed amendments include the following:
- Every agreement under which rewards points are provided will be required to be made, renewed, amended or extended in accordance with any prescribed requirements in regulations, and suppliers will be required to disclose any information prescribed by regulations. Further, reward points must not expire, be cancelled, or suspended unless done so in accordance with the regulations. The content for any such regulations have not yet been proposed. By comparison, the 2002 Actcurrently provides that reward points cannot expire due to the "passage of time alone." This suggests that consumers will have new rights to retain their points unless additional, specific regulatory conditions are met.
- Consumers can request in writing the reinstatement of rewards points that were improperly expired, cancelled, or suspended. Suppliers must either restore the points or provide a written explanation if they deny the request.
- If a dispute arises, consumers have a private right of action against the supplier to recover the rewards points they believe they are owed.
- The Lieutenant Governor in Council may create regulations for rewards points agreements. Significantly, Bill 46 would allow the Lieutenant Governor in Council to specify in regulations that the new rules with respect to rewards points in the Act or any future regulations apply retroactively to agreements made before the legislation takes effect.
The Government of Ontario held a brief consultation and comment period on the proposed Bill 46 changes in Jun 2025, shortly after Bill 46 was introduced.
Why Businesses Offering Loyalty Programs with Reward Points Need to Pay Close Attention
Loyalty programs are now a critical component of many businesses' customer retention strategies, so suppliers of any size that offer rewards points need to pay close attention to these new rules. Mismanagement of rewards points—including improper expiration of points or unclear terms and conditions governing their use—can damage customer trust and could now potentially lead to additional legal consequences as a result of the private right of action.
It is critical that businesses selling to consumers in Ontario are vigilant and take a proactive approach to refining the terms and conditions for their loyalty programs in response to this proposed legislation, especially if rules are applied retroactively to existing agreements with consumers. Organizations should watch for a formal consultation on critical regulations following passage of Bill 46, and consider providing comments in the event the Government of Ontario does so decide to consult.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
