REWARD points programs are known to increase customer loyalty; but lately, a number of consumers have complained about problems associated with reward points during an investigation launched by the Shenzhen Consumer Council, Shenzhen Economic Daily reported.

The city’s municipal and district consumer councils have received a total of 1,117 complaints on reward points on purchases from Jan. 1, 2019 to May 31 this year, according to the report.

Redeeming reward points for cash, a recent popular marketing method, is seen like a free bonus from retailers. However, it is a commercial promotion activity since it is based on consumption.

The investigation results indicated that over half of the businesses offering reward points didn’t clearly remind consumers of their rules on the use of the reward points and expiry dates, which is against China’s consumer protection rights law.

It was also discovered that in some cases, consumers had to spend over 1,000 yuan (US$155.2) to earn 10 points, while it took 2,000 points just to redeem the cheapest product. On the other hand, retailers regularly deducted or emptied reward points upon expiry without reminding their consumers.

According to the report, the Shenzhen Consumer Council said that these rules limit consumers’ rights to redeem their reward points and are obviously unfair and unreasonable.

In one case, a business operator claims consumers can spend 20 yuan plus 199 points to redeem a water bottle. However, the actual water bottle price is 20 yuan.

According to the law, consumers are eligible to request businesses to fix or exchange defective goods redeemed with reward points.

The Shenzhen Consumer Council reminds consumers to check the reward points programs they are in and keep related evidence in case of disputes. (Wang Jingli)