The customer is always right, right? Wrong. Last week the U.S. Supreme Court unanimously ruled in favor of Northwest Airlines’ right to revoke loyalty program privileges to a passenger who complained too often, according to ABC News.
The passenger, Rabbi S. Binyomin Ginsberg, filed a class action suit in 2009 after he was removed from WorldPerks, the airline’s frequent flier program. He claimed the measure was to remove high-mileage passengers in the face of a pending merger with Delta Air Lines, and sought $5 million plus a restored WorldPerks status and prohibition of any future revocations of his status, according to Consumerist.
Northwest refuted the claim, pointing to a provision of the mileage program’s terms that gives the airline the right to cancel members’ accounts for abuse. The airline reported that Ginsberg complained 24 times in a seven-month period, including nine instances of delayed luggage arrival. All told, Northwest paid Ginsberg $1,925 in travel credit vouchers, 78,500 bonus miles, a voucher for his son and $491 in cash reimbursements, before pulling the plug on his account.
Justice Samuel Alito ruled based upon the Airline Deregulation Act, which prohibits parties from bringing forward state-level claims dealing with the price, route or service of an air carrier. Justice Alito noted that travelers can still take their complaints to the U.S. Department of Transportation or choose a different frequent flier program if they’re unhappy with an airline’s treatment.
“We think [the ruling] harms consumers by giving airlines greater freedom to act in bad faith in performing their contracts with consumers,” said Ginsberg’s attorney Adina Rosenbaum of the consumer advocacy group Public Citizen.
We don’t often side with the airlines here at IndependentTraveler.com, but in this case I think the ruling is fair. A line needs to be drawn for any rewards program because there are always going to be people who take advantage of a generous offer. Holding an airline accountable to high standards is one thing, but ultimately it’s a business that needs to act in its own best interests.
What’s your take? Would you side with the airlines’ right to protect themselves against excessive claims for compensation, or does this ruling give them too much power?
— written by Brittany Chrusciel