Protect Rewards, Ban Surveillance Pricing

Summary#

• This bill updates Nova Scotia’s consumer rules. It focuses on rewards points, bans certain kinds of personalized pricing, and sets clear, long warranties for many home goods and electronics.

• It would take effect on January 1, 2027.

• Key changes:

  • Rewards points cannot expire just because time passes, and they must be credited to your account automatically.
  • After a buyer dies, unused rewards points can be transferred to a spouse, partner, or family member without fees or hurdles.
  • Sellers are banned from “surveillance-based price discrimination” (personalized prices based on your data or profile).
  • Many new appliances and electronics come with a built-in warranty for parts and labour, lasting 3 to 6 years depending on the item.
  • Government can inspect pricing systems and, if needed, require an independent audit of a seller’s pricing algorithms.

What it means for you#

• Consumers and rewards program members

  • Your rewards points cannot expire over time. They become your property as soon as you earn them.
  • You should not need to file extra claims or coupons to get points; they must be added to your account automatically.
  • You can ask for a free, accurate statement of your points at any time.
  • If you return an item or points were issued by mistake or fraud, those points can be cancelled.

• Families handling an estate

  • Unused rewards points can be transferred to a spouse, common-law partner, or other family member you named.
  • If no one is named, points become part of the estate and can be claimed by beneficiaries.
  • Sellers cannot charge fees or set unfair steps to transfer points after death.

• Shoppers (online and in-store)

  • Sellers cannot set or change your price based on your personal data, browsing, location, or buying history.
  • Uniform sales, simple loyalty discounts (same price for all members), and prices based only on delivery costs or taxes are still allowed.
  • Real-time surge or dynamic pricing is allowed only if it is applied the same to everyone in a place and time and not tied to individual data.

• Buyers of appliances and electronics

  • New items come with a warranty of good working order (parts and labour) starting at delivery:
    • 6 years: range, refrigerator, freezer, air conditioner, heat pump.
    • 5 years: dishwasher, washing machine, dryer.
    • 4 years: television.
    • 3 years: desktop and laptop computers, tablets, cell phones, video game consoles.
  • Routine maintenance, damage from misuse, and most accessories are not covered (unless an accessory is prescribed later).
  • The seller or maker must pay reasonable shipping/transport and repair costs, or let you use a third party and cover that repair cost.

• Sellers and manufacturers

  • You must keep proper points records and provide free statements to customers on request.
  • You must show the warranty length clearly next to the advertised price (or retail value for leases) and give buyers warranty info after sale and before selling any extended warranty.
  • You cannot use individual-level data to set prices. Inspectors can ask for records, technical documents, and plain-English explanations of pricing systems. In some cases, you may have to pay for an independent algorithm audit approved by the Minister.

• Timing and penalties

  • Rules start January 1, 2027.
  • Breaking the Act can lead to penalties under the Consumer Protection Act.

Expenses#

No publicly available information.

Proponents' View#

• Protects people’s rewards points from expiring and makes it easy to inherit them, which many see as fair since points are earned with spending.
• Stops secret, personalized pricing based on surveillance of people’s data, which supporters say is unfair and undermines trust.
• Long warranties save families money on repairs and replacements, encourage better-quality goods, and can cut e-waste.
• Clear warranty labels near prices help shoppers compare real value and avoid buying unnecessary extended warranties.
• Gives the government tools to check pricing systems and act if sellers dodge the rules.

Opponents' View#

• Compliance could raise business costs (records, disclosures, repairs, audits). Critics say these costs may lead to higher retail prices.
• A blanket ban on personalized pricing could block discounts targeted to budget-conscious shoppers and reduce pricing innovation.
• Small and mid-size sellers may struggle with documentation demands and possible algorithm audits.
• Long mandatory warranties may increase disputes over misuse vs. defects and push companies to limit product lines or change return policies.
• Sharing pricing models and data with inspectors may raise concerns about trade secrets and data privacy.