1. Terms and conditions should be presented clearly
Any changes to a loyalty scheme should be fair. Members and business should be given adequate notice.
A business should make sure:
- notification about expiry of point balances is clear
- frequent flyer schemes show any routes, seasons or classes of travel where ‘free’ seats are not available.
Before making a change in the value of points or earn rate, a business should:
- provide members with clear and timely notice and the opportunity to use their existing point balance
- consider providing members with some form of compensation. For example, an increased point balance.
2. Unfair contract terms should be banned
The Australian Consumer Law should be updated to include bans on unfair contract terms and certain unfair trading practices.
3. Automatic linking of payment cards should end
End the practice of automatically linking members’ payment cards to their loyalty scheme profile.
This is to prevent tracking purchasing behaviour and transaction activities when consumers don’t scan their loyalty card.
4. Data practices of loyalty schemes must improve
Loyalty schemes should:
- show information to consumers about how their data is handled
- give consumers control over their data.
5. Protections in the Privacy Act should be strengthened
Strengthen protections in the Privacy Act and broader reform of Australian privacy law
Recommendations for Privacy Act amendments include:
- updating the definition of ‘personal information’
- strengthening notification requirements relating to collection of consumers’ personal information
- improving consent requirements
- entities to erase consumer personal information on request
- the right to seek compensation for breaches of privacy.