Are loyalty programs a scam now?

05/26/26 - Tuesday

May 26, 2026

 

Hey friend,

You know that thrill of spending months, possibly years, earning points through your purchases and finally accumulating enough to get the coveted free latte or free meal you love!?

Yeah… we need to talk about that.

Because while it feels like a win, it might actually be a big ol scam.

🎧 Today’s Episode: The Loyalty Program Trap: Why Rewards Are Getting Worse in 2026

We dug into a recent investigation on loyalty programs (you know, the apps that “reward” you with discounts and freebies!?) and found this big takeaway:

Loyalty programs are no longer about rewarding you. They’re about tracking you.

Companies are:

  • Collecting (and selling) more data than ever based on your rewards app usage

  • Adjusting pricing and offers based on that data

  • Quietly devaluing points while making you spend more to earn them

So while you think you’re getting a deal… They’re figuring out how to extract every penny possible from you without pushing you toward a competitor. But spoiler, their competitor is doing the same thing.

And to be clear, this isn’t about shaming rewards.

It’s about seeing the full picture so you can choose wisely.

Because yes, we understand the cost of goods goes up as the cost to produce goods rises. But we also understand companies will exploit you to the edge to make make as much profit as possible and if they ca raise prices beyond inflation to do that they will.

And they do… thanks to the data they’re able to collect from their loyalty programs and apps.

💡 What do we do about it?

Before your next “points motivated” purchase, pause and ask:

“Would I still want this if no rewards were involved?”

If yes, great.

If not, you just saved yourself from a purchase that wasn’t really about you.

That’s how you stay in control. And that’s way more important than maintaining your “status” with a brand that doesn’t care about you.

If this frustrates you, watch today’s episode. We lay out examples of how they use your data, the worst offenders, and more that you can do to fight back.

🤝 Protect Yourself

If the biggest takeaway from this episode is that your data is more valuable than your points… this is where you can protect it.

You’ve heard us talk about Aura** before for identity theft protection but this is another place it comes in clutch.

Aura helps close the loop on the kind of tracking and exposure highlighted in the report.

With Aura, you can:

  • Get alerts if your data is being used or exposed

  • Block data brokers from selling your personal info

  • Protect multiple devices and family members

It’s one of those tools that works quietly in the background so you don’t have to think about it.

Because if companies are getting smarter about tracking, we can get smarter about protecting.

🎯 The bottom line

Rewards aren’t bad.
But they’re not neutral either.

And when you understand how they’re designed, you can stop playing a game that’s stacked against you.

Spend on what you love.
Skip what’s trying to manipulate you.

That’s the difference.

Warmest,
Jen + Jill

P.S. After you listen, head to the episode and let us know in the comments:
Have you ever spent more just to earn a reward? 👀

**Means this is a sponsored or affiliate section. We may earn a small fee or commission when you choose to try one of our sponsor or affiliate partners. But opinions are still 1000% our own.