Shreveport, LA asked in Consumer Law for Louisiana

Q: is receiving benefits from someone else/business spending illegal?

A friend works at a company which buys groceries from a store that offers points toward cheaper gas. The friend asked a coworker, who buys said groceries, to use his phone number in order to reap the points from the grocery store, for personal use, via the company spending money.

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James L. Arrasmith
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Answered
  • Consumer Law Lawyer
  • Sacramento, CA

A: Using a rewards program in a manner that diverts benefits intended for a company to an individual, without the company's consent, can raise legal and ethical issues. The legality of this action depends on the terms of the rewards program, the company's policies regarding employee benefits from corporate transactions, and any agreements between the company and the rewards program.

If the rewards program's terms prohibit transferring points or benefits to individuals for personal use when the spending is done on behalf of a company, then using the points personally could be considered a violation of those terms. Additionally, if the company expects to benefit from such points and is unaware of the arrangement, this could be seen as deceitful.

It's important for your friend to review the terms of the rewards program and understand the company's policy on employee benefits from company expenses. If there's any doubt about the legality or ethics of the situation, it would be wise to seek advice from someone with authority within the company or consult with a legal professional to avoid potential legal repercussions. Transparency and obtaining explicit permission from the company might mitigate any issues.

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