A bill that would drastically change how frequent flyer and similar points programs work, including banning expiration dates and requiring airlines to give advance notice of changes has been introduced in the U.S. Senate.
The bill, dubbed the Protect Your Points Act, was introduced by Illinois Senator Richard Durbin, and includes numbers of protections that have been proposed by Transportation Secretary Pete Buttigieg. They include
- Requiring airlines to issue any changes to the service terms of frequent flyer programs and cobranded credit cards at least one year in advance
- Requiring airlines to display the financial value of points and miles within 90 days of enactment, including real-time updates
- Requiring airlines to display airfare and add-on pricing in both dollar and points and miles value
- Requiring airlines to extend the shelf life of points and miles so they do not expire
- Allowing travelers to pay for airfare and add-on services with points and cash
- Allowing travelers to transfer points (for free) to family members or others who are part of the same frequent flyer program
- Allowing travelers to transfer an unlimited amount of points and miles to another traveler’s account while remaining of equal value
Under terms of the bill, enforcement would be assigned to the Department of Transportation and the Consumer Financial Protection Bureau.
Some of these are already allowed by some airlines, including non-expiring points at Delta, United and JetBlue; several airlines already allow a mixture of cash and points.
But all programs are built on language allowing the airlines to make changes at any time, with little or no notice, and airlines have frequently in recent years made abrupt changes in the value of points by changing how many are needed for its flights.
The proposal drew immediate unfavorable (and predictable) response from Airlines for America, the lobbying arm of U.S. airlines, which told loyalty site TPG, apparently with a straight face, that “U.S. airlines have been working to Protect Our Points for years against those working to eliminate these loyalty programs. U.S. airlines are transparent about these programs, and policymakers should recognize their popularity and work to ensure that unnecessary regulation doesn’t eliminate them.”
They may have been referring to another bill Durbin has sponsored, the Credit Card Competition Act, which would have the effect of reducing swipe fees paid by customers or merchants for using credit cards; some have argued that the bill would reduce the income from which card issuers purchase points to give out as incentives.
