A reader writes the following in response to my story about Aeroplan's new policy of poaching points from members who don't use their accounts for 12 months. I blogged that this practice would be considered stealing if your bank did it. The reader responded:

Your bank analogy doesn't fly. The Bank of Canada exists because banks CAN close your account if you don't use it. Granted it's after 10 years of inactivity not 1, but that actual money you earned, inherited, etc. but as you pointed out - a loyalty program is different in that the points were given not paid for. You still get the product or service that you paid for - PLUS the loyalty points. So they don't equal money and while they do have a real value, it must be acknowledged that they are not the same. The emails aren't vague or subtle - the title states to use your account before the miles expire. Bottom line? Read the contract and stay up to date and you won't lose.

Thanks for the response. Of course, the points aren't cash in themselves. But as a consumer, I would have chosen to transact business with the company with the loyalty program based on my wish to accumulate points and actually use them.

My issue with the 12 month rule is this: I think it's designed to catch napping consumers who don't read every fine print detail and who don't check their Blackberry twenty times a day. If they made it a five year rule, fine. Those consumers really don't use the company's services. But one year? Not good enough, in my book.

And to your point about the bank having ten years before declaring your account dormant: even at that point, the bank account holder can avail of the process with the Bank of Canada to get the money back. With Aeroplan, you have to pay a fat upfront fee to recover the miles. And at what they're charging, there is no point.

I reported the Aeroplan story on Global TV tonight (July 22, 2007).

The company is still defending its decision to grab Aeroplan miles from customers who haven't spent money through the program in the last 12 months.

Gillian Hewitt, Aeroplan's manager of corporate reputation told me by email:

It’s simple: the faster miles are earned by active, engaged members and used towards the rewards they want, the more successful a loyalty program becomes.  And just as a retail store manages its inventory in part through its return policy, Aeroplan manages accumulated and redeemed miles through its expiry policy.

Delightful, isn't it?

You earn the points, they renege on delivering the service promised.

Isn't Canada a nation of savers? Just be careful not to save those points or miles for more than a year, unless you want to forfeit them.

As a business practice, the director of the MBA program at the Schulich School of Business at York University says Aeroplan is probably doing the right (corporate) thing.

Ashwin Joshi told me in an interview that these programs were designed to reward consumers who are loyal; when customers don't use the service for more than a year, they are not the most loyal customers.

But what about all the loyalty that went into accumulating those points? Does that count for nothing? Not at Aeroplan. Whether you have 100 miles in your account or 1,000,000 miles in your account -- if you didn't earn or burn miles in the last year, you're a deadbeat.

Good for the government of Ontario for passing a law prohibiting retailers from putting expiry dates on gift cards (gift certificates) as of October 1, 2007. Opportunistic retailers were devaluing the cards to zero, or charging administrative fees to users who didn't use the cards within a fixed period.

That kind of practice, in my view, is tantamount to stealing.

What's the difference between loyalty points and gift cards? Business people will tell you that a customer's cash was used to purchase the latter, while a corporation's good will or marketing was behind the former. In other words, you bought the cash card - they bought the loyalty program. The company should decide how to administer the loyalty program.

Administer it, fine. Spend your time helping me get a flight on Air Canada when I want to travel using my points. But don't zero my balance because I'm not your gold customer.

If you feel like this is wrong, let Aeroplan know it. And tell their partners, too: including Air Canada, Esso, Home Hardware, or the list of companies on their website.

Hoarders of Aeroplan miles, BEWARE!

The frequent flyer reward program is taking back points from loyal members who've saved them up for a big trip.

No, it's not theft (not exactly). But there is definitely something missing from your wallet. Unfortunately, there is no point calling police.

As of July 1, 2007, Aeroplan began carrying through on the policy it announced last October. From their press release last year, here was part of the promise:

Effective July 1, 2007, Aeroplan will change the terms of its mileage
expiry policy to require members to have transacted with the program - either
one accumulation or one redemption - once in a consecutive 12-month period. 
This means that, as of July 1, 2007 and onwards from this date, a member must
have transacted once with the program in the 12 months prior to avoid expiry
of all miles in the account.

So, if you didn't use your Aeroplan card by taking a trip, or buy merchandise from a supplier, or book a flight, uh - sorry. As the expression goes: you're OUTTA here.

My friend, Devin Keshavjee, is among the losers. Points losers, that is. My Toronto TV producer pal, who worked at Global and now at places like CBC and Discovery, is out 76,000 miles. That more than enough for a round-trip ticket to Paris. He could have taken his wife on a holiday to Florida this winter. But no - Devin has lost his hard-earned loyalty points. Thanks to Aeroplan.

The company, of course, is looking for every opportunity to shed members like Devin. (Who had been stockpiling points in the hope of using them for a trip to Asia.)

It's house-cleaning time. Out with the in-frequent flyers. Off with the points.

How many Canadians with Aeroplan accounts will forget about this new rule and lose those stockpiled miles? I'm sure there will be many. (Please get in touch if you do; I'm working on a story about this.) The e-mail address is sos@globaltv.com

Undoubtedly, in the millions of e-mails Devin receives, there may have been one subtly warning of the possibility. A gentle reminder, maybe. But is that really licence to take away these miles?

What if your banker did the same? "Yes, sir, you did have $300,000 in your acccount. And I realize you've been sailing the world enjoying yourself these last 12 months. But unfortunately, that frivolity kept you from our bank, and we have every right to seize your money."

Not likely. That's called stealing.

Time to cash in the points, do some Aeroplan business, or to call these guys with your (polite) thoughts.