Brazil loyalty program regulation and judicial rulings

The legal and regulatory landscape for loyalty programs in Brazil is undergoing significant developments. The Chamber of Deputies approved Bill 3.083/2026, which seeks to regulate the conversion of accumulated points or miles into cash and establish national rules for their economic value. This legislation aims to prevent companies from penalizing consumers for the lawful sale of miles and prohibits restrictions on the sale or transfer of miles in programs where cash conversion is limited.

Under the proposed bill, companies offering subscription clubs or selling points would be required to implement mechanisms for cash conversion. While the bill prohibits companies from using account suspensions or balance retentions to block legitimate transactions, it allows for fraud prevention through auditing and tracking.

The legislation has faced opposition from a coalition of 11 industry entities, including the Brazilian Association of Loyalty Market Companies (ABEMF). These groups have called for a Senate review, arguing that mandatory cash redemption could “deconstruct the concept of loyalty programs” and create market reserves that harm competitiveness. Industry representatives also warned that the regulations might increase risks regarding fraud and consumer security. The bill has moved to the Federal Senate for further analysis.

In a separate judicial development, the Superior Tribunal de Justiça (STJ) ruled that loyalty program points and miles can be seized to settle debts if they possess economic value. This ruling applies even if program regulations state that points are non-transferable. To protect the consumer's balance during such seizures, the expiration countdown for points is suspended.