Is it legal to buy and sell frequent flyer miles?

Air Travel

By Kristy Tolley

One of the perks of frequent flyer programs is the accumulation of miles that can be redeemed for flights, upgrades, and other benefits. However, some people may be tempted to buy or sell miles to reach their desired reward faster or profit from them. The question is, is it legal to do so? The answer is not straightforward, as it depends on various factors, such as the airline’s policies, the terms and conditions of the program, and the applicable laws in different jurisdictions.

Understanding the Terms and Conditions of Airline Programs

Before considering buying or selling miles, it is essential to read and understand the terms and conditions of the airline program, which govern the use of miles and the eligibility criteria for earning, redeeming, and transferring them. Some airlines explicitly prohibit buying or selling miles, while others may allow it under certain conditions or with restrictions. Moreover, the terms and conditions may vary depending on the program’s tier, status, or region. Therefore, it is crucial to review them carefully and comply with them to avoid penalties, such as account suspension, forfeiture of miles, or legal action.

The Legality of Buying Miles: A Gray Area in the Law

The legality of buying miles is a gray area in the law, as there is no clear consensus among regulators, courts, and airlines. Some argue that buying miles is similar to buying any other commodity, and therefore, should be legal if both parties agree on the price and terms. Others contend that buying miles violates the airline’s intellectual property rights, as they are considered proprietary assets that cannot be transferred or monetized without the airline’s consent. Additionally, some jurisdictions may have laws that prohibit or regulate the sale of miles, such as consumer protection, contract, or fraud laws. Therefore, it is advisable to seek legal advice before engaging in any transaction involving miles.

The Risks of Buying or Selling Miles: What to Be Aware Of

Buying or selling miles also entails some risks that buyers and sellers should be aware of. One of the most significant risks is fraud, as some scammers may offer miles for sale at a discounted price but fail to deliver them or use stolen or fake accounts. Another risk is account closure or devaluation, as airlines may detect any suspicious activity or violation of their policies and take measures to punish the offenders. Moreover, buying or selling miles may not always be cost-effective, as the transaction fees, taxes, and restrictions may offset the potential benefits. Therefore, it is crucial to do thorough research, compare prices, and verify the credibility of the seller or buyer before proceeding with any deal.

Airlines’ Policies on Buying and Selling Miles

Airlines have different policies on buying and selling miles, depending on their business model, market position, and customer base. Some airlines prohibit buying or selling miles altogether, as they consider them non-transferable and non-refundable assets that cannot be monetized. Others may allow buying or selling miles but with restrictions, such as limited quantities, higher prices, or exclusive channels. Moreover, some airlines may offer their own marketplace or exchange platform for buying or selling miles, where they can control the prices, fees, and terms. Therefore, it is advisable to check the airline’s policies before attempting to buy or sell miles.

Consequences of Violating Airline Policies on Miles

Violating airline policies on miles can have severe consequences, such as account closure, forfeiture of miles, loss of elite status, and legal action. Airlines have sophisticated systems to monitor any suspicious activity or violation of their policies, such as buying or selling miles, pooling accounts, or booking award tickets for others. Once detected, airlines may freeze the account, investigate the matter, and take appropriate measures, depending on the severity and frequency of the offense. Therefore, it is crucial to comply with the airline’s policies and avoid any activity that may raise red flags.

How to Safely Buy or Sell Miles

Buying or selling miles can be a safe and legitimate way to maximize the benefits of frequent flyer programs, as long as it is done through reputable and authorized channels. Some airlines offer their own marketplace or exchange platform for buying or selling miles, where the terms and conditions are transparent and the risks are minimal. Moreover, some travel agencies specialize in buying and selling miles, and they can provide a secure and convenient way to transfer miles between accounts. However, it is essential to verify the credibility and reputation of the seller or buyer, check the fees and taxes, and read the terms and conditions carefully.

Other Options for Maximizing Your Miles

Buying or selling miles is not the only option for maximizing the benefits of frequent flyer programs. There are other ways to earn, redeem, and transfer miles that are legal, safe, and cost-effective. For example, travelers can earn miles by using co-branded credit cards, booking flights and hotels, shopping online, or participating in promotions. They can also redeem miles for flights, upgrades, hotel stays, car rentals, or merchandise. Moreover, some airlines offer pooling or sharing programs that allow family members, friends, or colleagues to combine their miles for a common goal. Therefore, it is advisable to explore all the options and choose the ones that suit the individual needs and preferences.

The Ethics of Buying and Selling Miles

The ethics of buying and selling miles is a contentious issue, as some people consider it a fair and reasonable practice, while others view it as unethical and exploitative. Those who support buying and selling miles argue that it is a legitimate way to monetize a valuable asset that would otherwise go to waste, and that it benefits both parties by providing a win-win situation. They also argue that airlines have a monopoly on the market and that buying and selling miles creates competition and innovation. On the other hand, those who oppose buying and selling miles argue that it undermines the integrity and fairness of the frequent flyer program, as it allows people to bypass the rules and gain an unfair advantage. They also argue that it encourages hoarding and speculation, and that it devalues the miles and the loyalty of the program.

Alternatives to Buying or Selling Miles

For those who are not comfortable with buying or selling miles, there are alternatives that can help them maximize the benefits of frequent flyer programs. One option is to use the miles for travel, upgrades, or other rewards, without transferring them to others. Another option is to donate the miles to charity, which can support various causes, such as disaster relief, education, health, or environment. Some airlines have partnerships with charitable organizations and offer the option to donate miles directly from their accounts. Moreover, some airlines offer points or cashback programs that allow travelers to earn rewards for their everyday purchases, without having to accumulate miles.

The Future of Frequent Flyer Programs and Miles

The future of frequent flyer programs and miles is uncertain, as the airline industry is facing unprecedented challenges and transformations, such as the COVID-19 pandemic, the shift to digital technologies, and the changing consumer preferences. Some experts predict that the frequent flyer programs may become more flexible and personalized, as airlines seek to differentiate themselves from their competitors and retain their loyal customers. They may also adopt new technologies, such as blockchain, to enhance the security and transparency of the miles transactions. However, the future of buying and selling miles remains uncertain, as it depends on various factors, such as the legal, regulatory, and ethical considerations.

Conclusion: The Bottom Line on Buying and Selling Miles

Buying and selling miles can be a tempting and lucrative opportunity for frequent travelers, but it also entails some risks and uncertainties that should be carefully evaluated. While it is not always illegal to buy or sell miles, it is essential to comply with the airline’s policies and the applicable laws and regulations. Moreover, it is crucial to do thorough research, compare prices, and verify the credibility of the seller or buyer before engaging in any transaction. Ultimately, the decision to buy or sell miles should be based on individual needs, preferences, and values, and should not compromise the integrity and fairness of the frequent flyer program.

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Kristy Tolley

Kristy Tolley, an accomplished editor at TravelAsker, boasts a rich background in travel content creation. Before TravelAsker, she led editorial efforts at Red Ventures Puerto Rico, shaping content for Platea English. Kristy's extensive two-decade career spans writing and editing travel topics, from destinations to road trips. Her passion for travel and storytelling inspire readers to embark on their own journeys.

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