Key international loyalty regulations for global brands to know

As the global economy becomes more interconnected and businesses increasingly operate on an international scale, it is important for brands to be aware of the various regulations and laws that govern loyalty programs in different countries. From points expiry and redemption policies to data privacy and consumer protection, there are a number of key regulations that global brands should be familiar with in order to ensure that their loyalty programs are compliant and successful.

The global loyalty market is a fast-growing industry that has experienced rapid growth over the past few years. In fact, according to data from eMarketer, global spending on loyalty programs reached $8.4 billion in 2018 and is projected to reach $13 billion by 2022. However, with this growth comes an increase in regulations that can affect how loyalty marketers operate their programs around the world. As such, it's important that companies remain compliant with international laws and regulations while also understanding how these laws might impact their business operations.

One of the key areas of regulation for loyalty programs is points expiry. In many countries, there are specific laws that govern how long points can remain valid and how they can be redeemed. For example, in Canada, the province of Ontario has proposed legislation that would require businesses to allow customers at least two years to redeem their points and to clearly disclose their expiry policies. In the United States, the state of California has similar legislation in place, requiring businesses to give customers at least 18 months to redeem their points.

Another important area of regulation for global brands is data privacy. With the increasing use of digital technologies in loyalty programs, there is a growing concern about the collection and use of personal data. In the European Union, the General Data Protection Regulation (GDPR) sets strict rules for the handling of personal data, including the rights of consumers to access and control their own data. Global brands operating in the EU must ensure that their loyalty programs comply with these rules in order to avoid fines and other penalties.

The EU has been a leader in data protection and privacy laws for many years. In May 2018, it rolled out the General Data Protection Regulation (GDPR), which sets rules on how companies handle personal information gathered from users of their services. The regulation applies to any business that processes or stores data on people who live in an EU country, even if that business is based outside of Europe.

The GDPR requires companies to comply with certain standards for processing personal information, including obtaining consent from customers before collecting their data and documenting how that information will be used and stored. It also requires businesses to notify European regulators within 72 hours if there's a breach of customer information security—something that most American businesses did not do until recently because they weren't required by law to do so at the federal level.

These regulations are potentially a headache for marketers trying figure out how best adapt their advertising strategies as well as compliance measures like obtaining consent from customers before collecting any personal info at all time.

In addition to points expiry and data privacy, global brands must also be aware of consumer protection regulations in the countries where they operate. These regulations can cover a wide range of issues, from advertising and marketing practices to dispute resolution and refund policies. For example, the Australian Consumer Law requires businesses to be transparent and fair in their dealings with customers, and to provide accurate information about their products and services. Global brands operating in Australia must ensure that their loyalty programs comply with these requirements in order to avoid legal and reputational risks.

In many markets, marketers are used to the idea that loyalty marketing is a big deal. But if you're a global brand, it's important to check in with your target markets and find out how loyalty regulations are playing out there. The good news is that many of these regulations are consistent across regions; but there are still some country-specific nuances you'll need to keep track of.

One thing all loyalty marketers should do is familiarize themselves with the data protection laws in their target markets and make sure they're compliant with them before collecting any personal information about customers. In addition to keeping up with international laws, brands can use this opportunity to improve the customer experience by asking only for what they truly need from consumers—and being clear about why they're collecting certain types of data versus others.

Overall, global brands must be aware of the various regulations and laws that govern loyalty programs in the countries where they operate. By being informed and proactive, they can ensure that their loyalty programs are compliant and successful, and can avoid potential legal and reputational risks.