For SPN Lifer's and others' perusal,
B&P 17500, et seq. is the portion of the code which deals with deceptive advertising. It is part of the same chapter that starts at B&P 17200 and which reads as follows:
"As used in this chapter, unfair competition shall mean and include any unlawful, unfair or fraudulent business act or practice AND unfair, deceptive, untrue or misleading advertising and any act
prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code."
The other question you raised about the sale of air transportation by someone who is not licensed is addressed by another part of the Business and Professions Code; 17550.
A "seller of travel" is defined by section 17550.1 to "mean a person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can
or may arrange, or has arranged, wholesale or retail air or sea transportation either separately or in conjunction with other travel services." There are some exemptions to this definition [primarily ocean and air carriers themselves] but for our purposes, let's ignore them for the moment.
The seller of travel law mandates registration; compliance with certain disclosures to purchasers of travel; and, joining and contributing to a restitution fund.
Secon 17550.19 provides criminal penalties [as a misdemeanor] and $10,000 fine in addition to civil penalties for "violation of this article."
So you see that in California, it very well may be unlawful to sell, offer to sell, conspire with others to sell or offer to sell air travel, frequent flyer mileage, air tickets secured with frequent flyer mileage; whether or not registered as a seller of travel; or whether or not full disclosure is made that the sale of air travel procured in this manner violates the airlines' terms and conditions.
Hope this helps.