Qantas-BP points tie-up set to get ACCC approval

QANTAS Airways’ proposed tie-up with BP looks set to be approved by the competition watchdog, meaning more motorists will be able to earn frequent flyer points from next March.

The Australian Competition and Consumer Commission has announced it is “proposing to grant authorisation” to allow Qantas, BP Australia and independent BP petrol stations to collectively participate in each other’s reward programs.

ACCC commissioner Stephen Ridgeway said the arrangements would provide public benefits by giving consumers more opportunity to earn and use reward-program points.

“We don’t think the planned arrangements will have any significant negative impact on competition,” Mr Ridgeway said.

“There are many retailers, petrol and non-petrol, that could participate as partners in other loyalty programs.”

Mr Ridgeway said the ACCC’s only reservations related to the potential for consumer harm arising from BP sharing consumer data with Qantas as a result of the arrangements.

“We encourage BP and Qantas to adopt the recommendations regarding the collection and use of customer data in the ACCC’s final report into customer loyalty schemes when it is published,” Mr Ridgeway said.

The ACCC’s draft report, which was published in September, said the watchdog was concerned about the opaque, take-it-or-leave-it privacy policies of major loyalty programs.

It also raised issues with how some schemes collect data on consumers using linked payment cards, even when they have not scanned their loyalty card.

A Qantas spokeswoman said the only customer data shared between BP and Qantas was the information that would allow them to ensure Qantas points were earned correctly, such as their frequent flyer number and the number of points earned.

“We know being able to earn Qantas points on fuel and instore purchases across BP will be very popular among our 13 million frequent flyers and 250,000 Qantas Business Rewards members,” she said in a statement.

WE DON’T THINK THE PLANNED ARRANGEMENTS WILL HAVE ANY SIGNIFICANT NEGATIVE IMPACT ON COMPETITION. THERE ARE MANY RETAILERS THAT COULD PARTICIPATE AS PARTNERS

STEPHEN RIDGEWAY, ACCC

The partnership is due to take effect in March after the troubled marriage between Virgin Australia’s Velocity program and BP officially ends.

In 2017, Virgin took the fuel company to court for trying to end their points contract.

Qantas frequent flyers will still be able to earn points through Caltex service stations through the Woolworths Everyday Rewards program.

The ACCC granted interim authorisation for the deal to take effect from February 1 and will make a final decision that month.

Shares in Qantas jumped 1.6 per cent yesterday to end the session at $7.14.

The Australian, with AAP