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Old Jan 26, 2000 | 6:12 am
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myleguy
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Join Date: Aug 1999
Location: Denver,CO, USA
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the pudding coup--a minority view

I realize this will probably resuly in my being permanently banned from Flyertalk, but does anyone beside me have some doubts about the propriety of Pudding Guy's feat? Here's my thinking on this: it is obvious that he found a loophole in this excellent promotion. No harm there, we all look for them. I don't know how to explain this other than by reference to a legal term called "overreaching." This describes a situation in which one party to a transaction finds he has an advantage which he exploits to an extreme degree. Not exactly fraud or illegality, simply taking advantage. Think about the economics here: I don't know what Conagra paid for the miles, but the normal "wholesale" rate for 3rd party distribution is around 1 centor even more as best as I can tell. Even assuming that Conagra got a good volume discount, it is likely that it lost $3 or $4 on each 25 cent sale. Multiply that by thousands of sales and it becomes a significant amount. So what's the bottom line: it would not be surprising if someone lost their job over this one and it makes it less likely that Conagra is likely to repeat this one any time soon (as someone has already inquired here). The issue then becomes do we kill the goose laying the golden eggs when we go beyond the obvious intent of a really great promotion (i.e. throwing an extra few items in the cart at the grocery store) and perhaps make this company and others less likely to offer these things in the future out of fear of getting burned by an unforeseen loophole. Okay, those are just some thoughts. Fire up your modems and take aim...
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