Loyalty Programs Curb Choice
Former ACCC chair Allan Fels criticizes loyalty programs in a report, claiming they curb competition and lock in consumers.
February 11, 2024
Simon Rowles
Founder, CEO
Unfair Business Practices Report Highlights Concerns Over Loyalty Programs
A report on unfair business practices led by Allan Fels, the former chair of the Australian Competition and Consumer Commission (ACCC), identifies loyalty programs as one of eight tactics employed by large businesses to engage in price gouging. The investigation concludes that these schemes are strategically designed to reduce competition and secure customer fidelity.
"The purpose of loyalty schemes is to lock in or at least bias consumer choices to products already chosen."
