Brazil Bill 3083/2026 proposes cash conversion for loyalty miles

The Brazilian Chamber of Deputies has approved Bill 3083/2026, which would authorize the commercialization of loyalty points and miles, allowing consumers to convert them into cash. The proposal requires companies that sell points or offer subscription clubs to implement mechanisms for cash conversion.

The bill has faced significant opposition from industry groups. A coalition of 11 entities, including the Brazilian Association of Loyalty Market Companies (ABEMF), has called for a review by the Senate. The coalition argues that the mandate to allow cash redemption could deconstruct the concept of loyalty programs and create a market reserve that harms competitiveness.

Industry representatives also warned that the new regulations could increase the risk of fraud and scams, potentially exposing consumers to security vulnerabilities. While the bill moves to the Senate, there is currently no consensus among lawmakers regarding its implementation.