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-   -   Warning/Confession: I was caught selling miles! (https://www.flyertalk.com/forum/milesbuzz/9151-warning-confession-i-caught-selling-miles.html)

consultingmiles Apr 24, 2003 10:26 am

Earlier, someone made reference to a class-action suit against the airlines that, if won, would allow consumers to buy and sell miles. Is this for real? I'd love to hear more about this case.

msn Apr 24, 2003 6:27 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by JonNYC:
eBay can't keep up! It's scary.</font>

Or won't keep up. Ebay gets its listing fees!

SPN Lifer Apr 25, 2003 7:03 pm

Originally posted by consultingmiles:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Earlier, someone made reference to a class-action suit against the airlines that, if won, would allow consumers to buy and sell miles. Is this for real? I'd love to hear more about this case.</font>
As posted on just the previous page of this thread:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">InsideFlyer has reported on a federal class action against Delta in the Southern District of New York based on the premise that such restrictions on individual sale create a monopoly for the airline to sell miles, in violation of antitrust laws. http://www.insideflyer.com/articles/o2.php?key=59 </font>
See also http://www.nysd.uscourts.gov
If you subscribe to PACER, you can view the docket sheets to become aware of pleadings and court rulings as they are filed.
http://www.nysd.uscourts.gov/pacer.htm

The ability to download pleadings and court rulings, known as CM/ECF (electronic case filing and document retrieval) is scheduled to be implemented at that court in late June 2003.
http://www.nysd.uscourts.gov/cmecf/cmecfindex.htm

Additionally, once a final decision is rendered, such as granting a motion for summary judgment or motion to dismiss, it may also be available on the court's website or through legal research sites.


[UBB edit.]

[This message has been edited by SPN Lifer (edited 04-27-2003).]

consultingmiles Apr 29, 2003 3:24 pm

That's an interesting lawsuit. Whereas I agree that the airlines are definitely monopolizing the mileage selling market and it's colluding to form the channels for distribution (e.g., milepoint, points.com), I find it difficult to believe that Delta will lose this case. Though, I am certainly rooting against them. What about the rest of you flyers?

Marysunshine Apr 29, 2003 5:13 pm

I think if they lose such a lawsuit, it will completely alter loyalty programs forever, in fact, they may become non-existent.

H53Epilot Apr 30, 2003 7:55 am


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Marysunshine:
I think if they lose such a lawsuit, it will completely alter loyalty programs forever, in fact, they may become non-existent.</font>
Well,
If you have any other ideas on what to do with MY CO or DL miles, I am all ears because I certainly can't USE them. Loyalty should go both ways.

Tango Apr 30, 2003 8:49 am

Delta tried to sue a mileage broker in NJ several years ago. The judge threw the case out saying it did not have any merit.

nindobe Apr 30, 2003 10:12 am


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tango:
Delta tried to sue a mileage broker in NJ several years ago. The judge threw the case out saying it did not have any merit.</font>
While selling miles dosn't break any laws, hence the suit having no merit, you are violating the programs TOS. They probably do have all the right to confiscate your miles. To collect damages from a broker that never signed an agreement with them is another story.

ozstamps May 1, 2003 8:12 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tango:

Delta tried to sue a mileage broker in NJ several years ago. The judge threw the case out saying it did not have any merit.</font>
Well the Judge did nor throw out the one where he awarded Delta $9 million against a broker, and they won that case hands down AFAIK.

Someone may have the link. This one I have (below) does not work these days!

http://iciclesoftware.com/worldplus/...aJudgment.html


ozstamps May 1, 2003 8:32 pm

Here you go. http://www.flyertalk.com/forum/smile.gif

http://www.awardtraveler.com/articles.asp?articleno=32

The federal district court in Atlanta has handed down a $9 million judgment in favor of Delta Air Lines (NYSE http://www.flyertalk.com/forum/biggrin.gifAL), against unauthorized ticket operations in Texas and Alaska. Delta believes that the damages award is the largest ever granted in a case against frequent flyer ticket brokers.

Delta's frequent flyer program rules prohibit the buying and selling of frequent flyer miles, awards, and tickets. In an earlier order in this case, the court ruled that ticket brokers are not authorized to buy and sell awards or tickets from program members and that any ticket transferred or acquired in this for travel, the airline is entitled to the full, undiscounted one-way fare for the travel measured as if the passenger had bought the ticket at the gate at the time of departure.

Based on the thousands of tickets brokered by the defendants in this case, the court awarded Delta compensatory damages of $9,093,857, plus punitive damages.





ozstamps May 1, 2003 8:43 pm


Also found this whilst searching - interesting read.

www.iciclesoftware.com/worldplus/WPBRAIssues/WPMSJPonziScheme.html

PremEx May 1, 2003 8:49 pm



[This message has been edited by PremEx (edited 05-01-2003).]

flaco May 1, 2003 10:02 pm

I wonder wether some of the people who sell Kellog's certificates on ebay aren't even members of Aadvantage. That way they don't risk anything by selling those certificates. And even if they were to travel on AA they could collect miles on a partner and not expose themselves to any risk.

flaco May 1, 2003 11:01 pm

Another comment about ebay auctions- I understand why someone would sell on ebay, but not why anyone would buy. Miles go for such high prices!

http://cgi.ebay.com/ws/eBayISAPI.dll...&category=1310

consultingmiles May 6, 2003 2:32 pm

I assume people buy at those high prices because they have incomplete information -- they just are not aware that the price they are paying is high relative to the marketplace.


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