AA potentially closing accounts due to credit card churning/churn
#347
Suspended
Join Date: Oct 2017
Location: Miami, Florida
Programs: AA ExPlat, Hyatt Globalist, IHG Spire, Hilton Gold
Posts: 4,009
#348
FlyerTalk Evangelist
Join Date: May 2004
Location: DFW/DAL
Programs: AA Lifetime PLT, AS MVPG, HH Diamond, NCL Platinum Plus, MSC Diamond
Posts: 21,422
I posted this in the Citi forum thread, but I received three Citi sign up bonuses this year:
MileUp (physical mailer sent to me under my name)
AA Platinum for (public link online)
Citibank for 50,000 (both an e-mail and a physical mailer sent to me under my name)
Three different products, no duplicate applications, no mailers not sent to my name, everything on board, etc. My current mileage stash is a result of SUB, card spending, miles earned from flights and purchased miles
I just booked a mileage trip for next year, everything ticketed.
MileUp (physical mailer sent to me under my name)
AA Platinum for (public link online)
Citibank for 50,000 (both an e-mail and a physical mailer sent to me under my name)
Three different products, no duplicate applications, no mailers not sent to my name, everything on board, etc. My current mileage stash is a result of SUB, card spending, miles earned from flights and purchased miles
I just booked a mileage trip for next year, everything ticketed.
#349
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,507
AA: "You better operate in good faith and fair dealing, although we definitely won't!"
On a slightly separate note, would a lawyer be able to translate the 'these Terms and Conditions disclaim any... implied contractual terms'? I'm probably missing something here, but it sounds like anyone shutdown for a reason not stated in the T&Cs (or related document they agreed to) could point to this as AA is implying contractual terms. In other words, shutdown for signing up your cat = legit as you can't sign up pets. Shutdown for too many signup bonuses through mailers for real people that didn't explicitly state non-transferable = more of a grey area, as that would be an implied contractual term.
#350
FlyerTalk Evangelist
Join Date: May 2004
Location: DFW/DAL
Programs: AA Lifetime PLT, AS MVPG, HH Diamond, NCL Platinum Plus, MSC Diamond
Posts: 21,422
Any company that says they can change terms any time without notice is not an ethical company in my book, so I reserve the right to "game it".
In my jurisdiction (not the US), loyalty programs must give a 60 advance notice before they can change program terms. That the model to follow.
In my jurisdiction (not the US), loyalty programs must give a 60 advance notice before they can change program terms. That the model to follow.
Your right to "game" AA might be OK for you, but that isn't going to stand up as a valid defense when they take your miles, stances, and/or cancel your award bookings
#351
FlyerTalk Evangelist
Join Date: May 2004
Location: DFW/DAL
Programs: AA Lifetime PLT, AS MVPG, HH Diamond, NCL Platinum Plus, MSC Diamond
Posts: 21,422
I do find it funny that AA is worried about people abusing the rewards program, yet the T&Cs also state "To the full extent allowed by law, these Terms and Conditions disclaim any duty of good faith and fair dealing as well as any implied contractual terms or obligations."
AA: "You better operate in good faith and fair dealing, although we definitely won't!"
On a slightly separate note, would a lawyer be able to translate the 'these Terms and Conditions disclaim any... implied contractual terms'? I'm probably missing something here, but it sounds like anyone shutdown for a reason not stated in the T&Cs (or related document they agreed to) could point to this as AA is implying contractual terms. In other words, shutdown for signing up your cat = legit as you can't sign up pets. Shutdown for too many signup bonuses through mailers for real people that didn't explicitly state non-transferable = more of a grey area, as that would be an implied contractual term.
AA: "You better operate in good faith and fair dealing, although we definitely won't!"
On a slightly separate note, would a lawyer be able to translate the 'these Terms and Conditions disclaim any... implied contractual terms'? I'm probably missing something here, but it sounds like anyone shutdown for a reason not stated in the T&Cs (or related document they agreed to) could point to this as AA is implying contractual terms. In other words, shutdown for signing up your cat = legit as you can't sign up pets. Shutdown for too many signup bonuses through mailers for real people that didn't explicitly state non-transferable = more of a grey area, as that would be an implied contractual term.
#352
Join Date: May 2011
Location: NYC (LGA, JFK), CT
Programs: Delta Platinum, American Gold, JetBlue Mosaic 4, Marriott Platinum, Hyatt Explorist, Hilton Diamond,
Posts: 4,895
#353
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,507
The part I was saying is that the form letters are accusing people of abuse, but if there is not a specific term that the person violated, I think AA would be in a tough spot from a legal standpoint to shut someone down due to it as they state there are no implied terms. The example I was giving is if someone gets shut down for using mailers given to them by friends/family, if the mailers do not explicitly say non-transferable, AA may be in the wrong for shutting down based on an 'implied contract term'.
If the person got mailers through creating fake AA accounts, that's one thing, but if they just received a lot of bonuses but didn't violate any terms, AA can point to abuse, but I think that would be murky at best, especially given that they are not trying to skirt any rules, but are actually identifying themselves as the same exact person every time and Citi keeps approving them, every time.
#354
Join Date: Dec 2003
Location: NYC
Posts: 6,433
I do find it funny that AA is worried about people abusing the rewards program, yet the T&Cs also state "To the full extent allowed by law, these Terms and Conditions disclaim any duty of good faith and fair dealing as well as any implied contractual terms or obligations."
AA: "You better operate in good faith and fair dealing, although we definitely won't!"
On a slightly separate note, would a lawyer be able to translate the 'these Terms and Conditions disclaim any... implied contractual terms'? I'm probably missing something here, but it sounds like anyone shutdown for a reason not stated in the T&Cs (or related document they agreed to) could point to this as AA is implying contractual terms. In other words, shutdown for signing up your cat = legit as you can't sign up pets. Shutdown for too many signup bonuses through mailers for real people that didn't explicitly state non-transferable = more of a grey area, as that would be an implied contractual term.
AA: "You better operate in good faith and fair dealing, although we definitely won't!"
On a slightly separate note, would a lawyer be able to translate the 'these Terms and Conditions disclaim any... implied contractual terms'? I'm probably missing something here, but it sounds like anyone shutdown for a reason not stated in the T&Cs (or related document they agreed to) could point to this as AA is implying contractual terms. In other words, shutdown for signing up your cat = legit as you can't sign up pets. Shutdown for too many signup bonuses through mailers for real people that didn't explicitly state non-transferable = more of a grey area, as that would be an implied contractual term.
Ginsberg combined with AA's T&Cs (and likely those of every other airline) pretty much allow them to do whatever they want regarding FF programs.
#355
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,507
They appear to be referring the NW Airlines v Ginsberg, a Supreme Court case in which the Court ruled that people can't sue airlines for violating various traditional implied contract terms, including good faith and fair dealing. AA is making that explicit in its T&Cs.
Ginsberg combined with AA's T&Cs (and likely those of every other airline) pretty much allow them to do whatever they want regarding FF programs.
Ginsberg combined with AA's T&Cs (and likely those of every other airline) pretty much allow them to do whatever they want regarding FF programs.
#356
Join Date: Dec 2003
Location: NYC
Posts: 6,433
Ah okay, that makes sense. In this case though, does the word 'abuse' provide enough cover for them if someone didn't violate any of the other T&Cs? Seems like that could be a PR issue for them if they have no definition of abuse, especially if the punishment is not merely refusing to let people rack up more miles, but cancelling trips (even mid-reservation) and revoking already earned miles.
I'd think they would have a PR problem if they are cancelling accounts of people whose only sin is getting bonuses without doing anything untoward and wouldn't have a PR problem if they cancelling people who signed up their pets for AAdvantage accounts or racked up hundreds of thousands of miles. Look at the various comment threads here and on blogs. OMAAT for example.
#357
Join Date: Sep 2009
Location: Global
Posts: 5,998
They appear to be referring the NW Airlines v Ginsberg, a Supreme Court case in which the Court ruled that people can't sue airlines for violating various traditional implied contract terms, including good faith and fair dealing. AA is making that explicit in its T&Cs.
Ginsberg combined with AA's T&Cs (and likely those of every other airline) pretty much allow them to do whatever they want regarding FF programs.
Ginsberg combined with AA's T&Cs (and likely those of every other airline) pretty much allow them to do whatever they want regarding FF programs.
Having said that, in general, it is AA's program, AA's rules, until someone goes to court and wins.
#358
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
One relevant provision is "Your ticket is not valid when: ... We find that the ticket was bought using an exploitative practice" That's rather broad.
I'd think they would have a PR problem if they are cancelling accounts of people whose only sin is getting bonuses without doing anything untoward and wouldn't have a PR problem if they cancelling people who signed up their pets for AAdvantage accounts or racked up hundreds of thousands of miles. Look at the various comment threads here and on blogs. OMAAT for example.
I'd think they would have a PR problem if they are cancelling accounts of people whose only sin is getting bonuses without doing anything untoward and wouldn't have a PR problem if they cancelling people who signed up their pets for AAdvantage accounts or racked up hundreds of thousands of miles. Look at the various comment threads here and on blogs. OMAAT for example.
#359
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,507
It's a matter of people here thinking it isn't bad because the shutdowns will indirectly benefit them. I think many here would think differently if, back when mileage runs were a much bigger thing, AA shut down AAdvantage accounts and cancelling all future award trips for mileage runners because they were 'abusing' the rules using 'exploitative' practices.
#360
Join Date: Oct 2015
Location: SFO
Programs: AA EXP, SPG / Marriott GLD, HHonors GLD
Posts: 520
It's a matter of people here thinking it isn't bad because the shutdowns will indirectly benefit them. I think many here would think differently if, back when mileage runs were a much bigger thing, AA shut down AAdvantage accounts and cancelling all future award trips for mileage runners because they were 'abusing' the rules using 'exploitative' practices.
Did AA go too far? Possibly, but I'll reserve my judgment until more facts come out about where they drew the line in the sand. Based on the JonNYC twitter feed looks like there'll be a major publication doing a story on it and we'll learn more.
No doubt in my mind creation of fictitious AA accounts and bartering codes goes over the line. And the vast majority of the general public would think that getting CCs several times a year to get bonuses would seem crazy / be beyond the spirit of the welcome bonus concept (even if in a gray area based on terms). But to compare this to mileage running seems absolutely crazy. That was people going on paid trips (and taking those trips) to accrue miles based on the explicit rules of the program. A fairer comparison would be if there was a way to mileage run without actually taking the flights, or changing routing and getting ORC repeatedly even though you didn't actually fly the route or something