United Sued For Gouging On Frequent-Flyer Rewards

Law360, New York (October 9, 2013, 3:03 PM EDT) -- United Airlines Inc.'s parent company was accused Tuesday of stealthily manipulating rates for frequent-flyer program benefits, such as hotel stays, to extract extra payments from its most loyal customers, in a proposed class action in New Jersey federal court.

Plaintiffs Robert Gordon and Melissa Chan alleged that United Continental Holdings Inc. represents that its MileagePlus rewards program allows customers to trade in miles flown on United flights for benefits like hotel stays, seat upgrades or priority bookings at fixed, published rates. But unbeknownst to customers, those...
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