Starting 1 January 2026, major supermarkets including Iceland, Tesco, Asda, and Sainsbury’s will be subject to new legal requirements designed to protect customers who participate in their loyalty and savings schemes. This change comes with the introduction of the Digital Markets Competition and Consumers Act 2024, which mandates that businesses running consumer savings clubs must shield customer payments and clearly communicate the safety measures in place.
Iceland’s popular Bonus Club, which offers shoppers a £1 bonus for every £20 saved, will now be covered under these regulations. Similarly, other well-known schemes such as Tesco’s Clubcard Christmas Savers, Asda’s Christmas Savings Card, Sainsbury’s Christmas Club Card, and the Co-op’s Christmas Savings Stamps will benefit from enhanced consumer protections.
Even smaller-scale savings clubs, like Park Christmas Savings, will be protected should the company face insolvency. Under the new law, businesses operating these savings schemes must establish trust accounts or secure insurance arrangements to ensure customer funds are safe if the company goes bust.
This legislation addresses a previous gap in consumer protection, as these savings schemes were not regulated under traditional banking or financial services laws. The government emphasizes that transparency is vital — businesses are required to provide clear, accessible information to consumers about how their money is safeguarded, aiming to boost consumer confidence and understanding.
Local authority trading standards and other enforcement bodies will oversee adherence to these regulations, ensuring that supermarkets meet their legal obligations while following best practices laid out in government guidance.
In summary, these new laws provide an important safeguard for consumers who use loyalty and savings schemes, giving them peace of mind that their funds are protected and that the process is transparent and trustworthy.