American Express Membership Rewards - Annual Fee Legalities?

Are there any regulations in U.S. law regarding memberships and annual fees? I.e. can a company charge 2 different fees to the same clientele?

What does this mean then? Doesn't it state that you can not set different a price if you provide the same goods/services?

Sec. 13. - Discrimination in price, services, or facilities

(a) Price; selection of customers

"It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality"

WhiteAmex - Are you having a conversation with yourself again? What are those other voices saying to you right now?

Snowcap

Funny. It would help if you could answer my question.

In what way has there been a discrimination in prices/fees/etc. vis-a-vis Amex products and services?

Snowcap

Of what, exactly, is that 'Section 13'?

I can hardly imagine a law that would prohibit a vendor from selling to its clients for different prices, that's a truly astonishing proposition.

This reminds me of good old LL Bean, famous for sending out a number of different catalogs.

All the merchandise was the same price, but depending on your zip code, you'd get higher or lower prices printed in it for the same stuff. Live in Greenwich, CT? High prices. The Bronx? Low prices.

d

Or what about Victoria's Secret? Their catalogs that were sent to men had higher prices than those sent to women.

Nonetheless, back to the subject at hand, I am not sure I understand what the different fees are that WhiteAMEX is referring to. Please elaborate. Thanks.

American Express raised the annual fee on the Centurion Card from $1,000 to $2,500. However, this increased annual fee was only applied to new members and not existing members of the card. This is unique, in that both Centurion cardholders are receiving the identical level of benefits and services, but at a different price.

When examining American Express’s history on other cards, it becomes apparently clear that something is wrong. For example, American Express also raised the annual fee on the Platinum Card from $300 to $395, during the same year. However, this new annual fee was applied to all members, past, present, and new applicants.

I think I have the answer to your question in two words - airline tickets.

WhiteAMEX - the concept of "charter members" is completely legal and used to offer different prices for the same product in numerous industries. So is the concept of targeted promotions...

WhiteAMEX:

Get back on the meds unless your doctor says otherwise. Read the whole section - it has to do with restraint of trade, not trying to make an extra buck. Here's a piece you missed in this section:

"...where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them...".



[This message has been edited by Rodney Dangerfield (edited 06-05-2003).]