Under what conditions does IC/PC deny points based on the rate?

I have a friend who has stayed with small groups that she's arranged at about a dozen properties with an average of about 10 to 15 room nights per stay (some up to 30 room nights in a single stay) over the past year, paying an average rate of about $89. These are generally either group rates, AAA rates, or weekend rates, equally distributed.

She has not received credit for A SINGLE ONE OF THESE STAYS she found when recently checking her statement (yes, she now knows to check regularly, thanks but don't need that advice)! She called today and spent nearly 3 hours trying to get credit from Priority Club and spoke with three different people, mostly getting grief and not credit for stays or points. She was listed as having ZERO nights of stay over this last year.

Their stated position is apparently 'no points if the rate is more than 30% off,' although of course when she booked and gave her account number, no notice of this on the phone, from the property, or on the web.

I mostly stay with SPG, Marriott, and Hilton, and have NEVER been denied credit on a stay booked through the program itself, so this seems completely absurd to me. Yes, I understand most programs don't give points for Priceline type stays, but NONE OF THESE were 'blind' style third pary bookings (all were booked through the official website, the 800#, or directly with the property). What gives, PC members? Is this normal treatment for this program? If so, why would ANY OF YOU do this program or work with this company? I have several hundred thousand points on each of the other programs I'm in (up to about 1 million on 1 of them), so I stay fairly often and know those programs reasonably well, and what constitutes standards practice.

Two things:

1. Is this normal?

2. What, if anything, can be done? Is there a contact at PC that can help with this absurdity?

3. Why is this considered a LOYALTY program, and not a DISLOYALTY program, since if this is normal, they would seem to want you to flee as fast as possible (which is my advice to her!).

Many thanks for any info -

ME