The Emerging Legal And Regulatory Risks Of Loyalty Programs

As part of our commitment to keeping you informed of new regulatory developments and their potential implications, we have highlighted recent statements by federal officials concerning loyalty programs, such as those involving airline miles and credit card points. These comments signal a potential shift in how these programs are viewed under consumer protection laws, and the plaintiffs' bar is likely to take notice.

Overview of Government Concerns

In a recent NPR interview, Department of Transportation Secretary, Buttigieg expressed concern that loyalty points and miles are not merely perks but are increasingly considered part of consumers' savings strategies. The key issue highlighted is the unilateral control companies hold over the valuation and terms of these loyalty currencies. Unlike bank deposits, the value and utility of loyalty points or miles can be altered by the issuer without the consumer's consent. This situation has drawn the attention of the