Yes.

For those of you who want to access California's laws on this subject why not go to http://www.leginfo.ca.gov/calaw.html .

The seller of travel law was intended to STOP essentially anyone who has a physical "presence" in California from offering for sale or representing he/she can assist in the sale of air or sea transportation, whether on its own or bundled with other "travel" unless registered and a part of the consumer restitution travel fund.

There used to be an exemption in the law to sellers of travel physically located outside of the State of California, but I couldn't find that exemption quickly in recently searching Business and Professions Code, 17550, et seq. However, I encourage any of you so interested to do so.

But here's the point; let's assume you were a registered seller of travel. If you sold air transportation secured directly or indirectly via frequent flyer mileage procured in violation of an airline's T&Cs, first of all the airline would come after you [or at least cut you off from legally selling its air transportation] for circumventing its rules. Second of all, you would still run afoul of California's unfair business practice [B&P 17200, et seq.] and deceptive advertising [B&P 17500, et seq.] laws unless you made full advance disclosure the sale was in violation of the airline's T&Cs [which would undoubtedly kill the sale and probably by definition, constitute an unfair business practice which itself is impermissible (as well as criminal)]. And third of all, if you were selling air tickets themselves versus the frequent flyer mileage which could be used to secure those tickets, you would be violating California's ticket scalping and unfair business practice laws.

I remind all of you that if a person attempted to accomplish any of the foregoing on eBay; whether inside or outside of California; or whether a registered seller of travel or not; in my opinion that person would be violating California law. EBay's principal place of business is Campbell, California and ALL auctions are explicitly governed by California law. These facts summarily resolve questions of "minimum contacts;" they're present.

Even if a sale were conducted by some other means, if payment were to be made via PayPal I would come to the same conclusion inasmuch as ALL PayPal transactions explicitly incorporate California law.

Now, will California come after anyone criminally for committing any of the foregoing? Probably not unless you're unfortunate enough to piss someone off in government and come within his/her radar. That said, all of those FTers who assert there's nothing "illegal" in selling or bartering airline frequent flyer mileage or tickets secured therewith are wrong in California.

Hope this helps.