FlyerTalk Forums - View Single Post - UA mistake award redemption rates for China travel [UA says will void tickets]
Old Jul 16, 2012, 4:09 pm
  #574  
davidbridgman
 
Join Date: Oct 2002
Location: Raleigh, NC, US
Posts: 74
Originally Posted by flyersky1
You keep repeating that miles are not currency. In this case you are not correct. They are. UA may own them before the contract. After the purchase, you own the ticket. Otherwise, would they have a right to cancel it if you paid 140K for your ticket? I don't think so!

I agree. And here's the full text of the rule:

It is an unfair and deceptive practice within the meaning of 49 U.S.C. 41712 for any seller of scheduled air transportation within, to or from the United States, or of a tour (i.e., a combination of air transportation and ground or cruise accommodations), or tour component (e.g., a hotel stay) that includes scheduled air transportation within, to or from the United States, to increase the price of that air transportation, tour or tour component to a consumer, including but not limited to an increase in the price of the seat, an increase in the price for the carriage of passenger baggage, or an increase in an applicable fuel surcharge, after the air transportation has been purchased by the consumer, except in the case of an increase in a government-imposed tax or fee. A purchase is deemed to have occurred when the full amount agreed upon has been paid by the consumer.

And the DOT answer to a specific question about mistakes:

Does the prohibition on post-purchase price increases in section 399.88(a) apply in the situation where a carrier mistakenly offers an airfare due to a computer problem or human error and a consumer purchases the ticket at that fare before the carrier is able to fix the mistake?

Section 399.88(a) states that it is an unfair and deceptive practice for any seller of scheduled air transportation within, to, or from the United States, or of a tour or tour component that includes scheduled air transportation within, to, or from the United States, to increase the price of that air transportation to a consumer after the air transportation has been purchased by the consumer, except in the case of a government-imposed tax or fee and only if the passenger is advised of a possible increase before purchasing a ticket. [B]A purchase occurs when the full amount agreed upon has been paid by the consumer. Therefore, if a consumer purchases a fare and that consumer receives confirmation (such as a confirmation email and/or the purchase appears on their credit card statement or online account summary) of their purchase, then the seller of air transportation cannot increase the price of that air transportation to that consumer, even when the fare is a “mistake.”

A contract of carriage provision that reserves the right to cancel such ticketed purchases or reserves the right to raise the fare cannot legalize the practice described above. The Enforcement Office would consider any contract of carriage provision that attempts to relieve a carrier of the prohibition against post-purchase price increase to be an unfair and deceptive practice in violation of 49 U.S.C. § 41712.



To argue that this is definitively against us with regard to miles purchases is, in my opinion, asinine. If anything, it is strongly titled in favor of the consumer, and suggests that their intention is to resolve ambiguities in favor of the consumer. It is clear DOT does not care how bad the mistake is on revenue flights. A flight for one cent would be a slam dunk based on the above. So why are they somehow going to rule that an award flight is not a "purchase"? How'd we get it? Why'd they issue a confirmation number? Just out of the kindness of their heart? No, it's because we paid the "agreed upon price" which in this case was MILES because the fare cost listed in my breakdown was ZERO and I paid the taxes and fees, thus I have 100% paid the "agreed upon price".

Last edited by davidbridgman; Jul 16, 2012 at 4:17 pm
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