New supermarket loyalty scheme law for Iceland, Tesco, Asda and Sainsbury’s(Image: )
Supermarket loyalty scheme members at Iceland, Tesco, Asda and Sainsbury’s are set to see major changes this month. From 1 January 2026, businesses that run consumer savings schemes, such as Christmas savings clubs, must protect customer payments and provide clear information about how they are safeguarded.
Iceland’s popular Bonus Club, which gives shoppers a £1 bonus for every £20 they save through the scheme, will be covered under the new laws.
Tesco’s Clubcard Christmas Savers, Asda’s Christmas Savings Card, Sainsbury’s Christmas Club Card, and the Co-op’s Christmas Savings Stamps, will also be covered.
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If you have money in a smaller Christmas savings club, like Park Christmas Savings, it will also now be protected in case the company goes bust.
The new rules are part of the Digital Markets Competition and Consumers Act 2024. The Labour Party government said: “Local authority trading standards and other enforcers may also find this guidance helpful.
“Where this guidance states that traders must do something, this refers to a legal obligation under the DMCCA. Where the guidance states that a trader should do something, it is best practice advice.
“The government has enacted legislation requiring businesses that operate consumer savings schemes, such as Christmas and similar savings clubs, to safeguard consumer payments.”
The documentation from the government went on and said: “These businesses must now establish trust accounts or secure insurance arrangements to protect these funds in case of insolvency.
“This requirement fills a significant gap in consumer protection for savings schemes which fall outside the regulated banking and financial services sector.”
Labour continued and added: “The legislation also requires businesses to provide clear and accessible information to consumers about how their payments are protected.
“The aim is to improve transparency and consumer confidence, ensuring participants understand the measures in place to protect their funds.”