U.S. Supreme Court Considers Frequent Flier Contracts
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U.S. Supreme Court Considers Frequent Flier Contracts
From today's NY Times:
http://www.nytimes.com/2013/12/04/us...contracts.html
http://www.nytimes.com/2013/12/04/us...contracts.html
Rabbi S. Binyomin Ginsberg used to fly often enough on Northwest Airlines that he achieved Platinum Elite status, the highest level. But the airline revoked his membership in its frequent flier program in June 2008, saying that he had abused it by making too many complaints and by booking himself on full flights in the hope of being bumped.
Paxing All Over The World
Anyone who thinks that FFPs are balanced between carrier and pax does not understand how FFPs work!
All companies that run a customer loyalty programme - from the days of Green Shield Stamps to the electronic card at a supermaket (which are Green Shield Stamps
- knows that they can change it at will.
Fair? No.
Life? Yes.
Whether or not this particular pax overworked the FFP of Northwest, is difficult to know. What is known is that countless folks will try to do this.
All companies that run a customer loyalty programme - from the days of Green Shield Stamps to the electronic card at a supermaket (which are Green Shield Stamps
- knows that they can change it at will.Fair? No.
Life? Yes.
Whether or not this particular pax overworked the FFP of Northwest, is difficult to know. What is known is that countless folks will try to do this.
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While it is in the contract that they can terminate membership, IMHO they should have allowed hit to either use his 'earned' miles or bought him out.
Ya, he likely was a PITA, but you don't just take something from somebody without compensation. If he did it to the airline he would be arrested for stealing.
Ya, he likely was a PITA, but you don't just take something from somebody without compensation. If he did it to the airline he would be arrested for stealing.
The Lord giveth, and the Lord taketh away 
Probably somewhere in the very small print there is a clause stating that inappropriate conduct will render FFP membership null and void. As already noted it seems unusual that the 'worth' of the passenger's status within the program wasn't returned on his being cast out into the desert.
Probably somewhere in the very small print there is a clause stating that inappropriate conduct will render FFP membership null and void. As already noted it seems unusual that the 'worth' of the passenger's status within the program wasn't returned on his being cast out into the desert.
Paxing All Over The World
ExXB Yes, I agree entirely but they will win the substantive case. Whenever you are presented with a Software or Hardware contract online there is no point reading it - because they all say the same: "We can do anything you (the supplier of money) can do nothing."
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A frequent flyer program is no more and no less than a contract between a carrier and its enrolled customers.
Not every provision of this heads I win and tails you lose agreement is enforceable by the airline, depending upon the contract laws of the state under which the contract is executed.
IMHO, Northwest, now Delta, was foolish not to have settled this case way back when.
This case could lead to a ruling based upon the applicable law and facts that could have far-reaching consequences for all carriers with US based passengers enrolled in their frequent flyer programs.
The days of bait and switch may be over and the airlines could find themselves with liabilities in these programs way beyond what they dreamed.
Not every provision of this heads I win and tails you lose agreement is enforceable by the airline, depending upon the contract laws of the state under which the contract is executed.
IMHO, Northwest, now Delta, was foolish not to have settled this case way back when.
This case could lead to a ruling based upon the applicable law and facts that could have far-reaching consequences for all carriers with US based passengers enrolled in their frequent flyer programs.
The days of bait and switch may be over and the airlines could find themselves with liabilities in these programs way beyond what they dreamed.
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In the EU unfair contract terms are non-enforceable. It would appear, to me at least, that a contract term that they can terminate you without compensation is an unfair term. Is it really unfair? Well that's up to the courts to decide?
