I don't think it was a ruse. When you look at people like doctajones' parents blowing 90,000 points, that rather explains why AirMiles wanted to introduce the expiry: All of those points represent a growing financial liability. They clearly wanted to reduce and limit this, thus expiring points.
They had to reverse course because Ontario was about to pass a law banning the points from expiring. If Ontario did it, other provinces would follow quickly. From AirMiles' perspective, better to just back off and avoid facing any other potential impacts from a law targeting them.
That said, I wouldn't doubt it if a lawsuit or two gets filed out of this.
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