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Miles, Points, and Courtrooms: The Wildest Loyalty Program Exploits Revealed

by Gary Leff on December 16, 2023

One of the most legendary miles and points feats was when Dave Phillips earned over a million American Airlines miles (and lifetime elite status) buying Healthy Choice pudding. Individual cups of pudding sold at the grocery store for 25 cents, and he filled up a van full across multiple grocery stores. Then he got one to bulk order 60 cases.

In total he bought 12,150 cups of pudding for $3,140, earning 1,215,000 miles. He donated the pudding to food banks (tax writeoff!) and they clipped the UPC codes for him.

He had to fill out each 500 mile certificate. The cost was still high, but miles were worth a lot more then. And his feat was memorialized by Adam Sandler in P.T. Anderson’s Punch Drunk Love.

That deal was honored. So was the 7 million AAdvantage miles I earned two years ago via SimplyMiles (making charitable donations to Mastercard’s charitable for sextuple miles). So was the US Airways holiday shopping promotion in 2009, buying stickers in a similar manner.

Pudding Guy was became one of the legends of FlyerTalk. Among this group I’d have to count:

  • the frequent flyer who beta tested his messaging app idea with fellow flyers. It was WhatsApp. When he sold the company to Facebook five years later for $19 billion, the sale close was forced because he had a Lufthansa first class award ticket and would be gone to Europe (and could not easily reschedule the booking).

  • the frequent flyer member who successfully ran for Congress but then resigned after using congressional funds to settle sexual misconduct charges and refused to pay back the money.

Those members rose to prominence for things they did outside of the community. Phillips’ prominence was his mileage antics. As part of Punch Drunk Love he actually walked them through earning 1 million miles with LatinPass in the first half of 2000 by flying at least one international segment on each of the ten LatinPass member airlines, flying at least three segments on partner airlines (KLM, US Airways, TWA); staying at least three nights in at least two partner hotels and renting a car for at least five days from their car rental partners.

But not all of the greats are honored. Sometimes companies come up with a technicality. And sometimes these deals wind up in court.

One of the best attempts ever to leverage a company’s loyalty program offer happened 27 hours ago, and is going viral again in social media.

A 21-year-old biz student found a risk-free way to turn $700k into $23M.

Instead, he got embroiled in a lawsuit with a Fortune 500 company.

Here is the story that will make your blood boil: pic.twitter.com/ZxWB23skp3

— Jesse Pujji (@jspujji) December 12, 2023

Some of you have been around the points hobby long enough to remember

That made the fighter jet just $700,000 points. One customer sent in a check for the points along with a redemption request. Pepsi denied it, saying that the whole thing was a joke. Three years later a judge ruled that the commercial imploring customer to buy Pepsi and save their points and telling them they could redeem for a fighter jet was not a legally binding offer.

5. After doing some research, John couldn’t believe his eyes…

He'd found a loophole stating that “Anyone could buy Pepsi points for only $0.10/pt.

Meaning he could buy a $23M jet for just $700k!

He immediately called his millionaire friend, Todd Hoffman to get him on board… pic.twitter.com/4oXAdnpwHx

— Jesse Pujji (@jspujji) December 12, 2023

8. Instead of backing down, he lawyered up and sued Pepsi for breach of contract.

But, unfortunately, Pepsi beat them to the punch and sued Leonard first as a way to intimidate him into dropping the case.

The case ended up turning into a 3-year-long procedural slog… pic.twitter.com/kS5tsw1PGU

— Jesse Pujji (@jspujji) December 12, 2023

This story, which I’d seen covered at the time, reminded me of Jodee Berry who won a Hooters beer sales contest in 2001. A store manager had promised employees that whomever sold the most beer in a month would receive a new Toyota.As the winner, she was blindfolded and taken to the parking lot, and given a toy Yoda. She sued, and won a settlement.

On April 1, 2001, Hooters offered employees the chance to win a Toyota as part of a beer sales contest.

One employee called Jodee Beery knocked it out of the park with sales and ended up winning the contest.

But instead of a car, she got a small package with a toy Yoda inside… pic.twitter.com/jZxq2VNnEb

— All Things Fascinating (@FascinateFlix) July 25, 2023

Occasionally consumers win – or at least settle. A decade ago a US Airways shopping portal deal seemed too good to be true and customers earned 200 million Dividend Miles – but the mall refused to pay, when the merchant (easyCGI) refused to pay. The members hired an attorney with a history of taking his compensation in points. And they eventually settled (and signed a non-disclosure agreement about it).

(HT: Golden Rule Travel)

Topics on this page
AAdvantageAdam SandlerAmerican AirlinesArbitrageConsumer behaviourEuropeFacebookFlyerTalkFrequent-flyer programKLMLawsuitLoyalty programLufthansaMastercardPunch-Drunk LoveTrans World AirlinesWhatsApp
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About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

More articles by Gary Leff »

Comments

  1. GUWonder says:
    December 16, 2023 at 3:18 pm

    The Pepsi points thing went to court, and the corporate apologist judge — the norm for the position in US courts — sided with Pepsi.

    The WhatsApp co-founder has done a stellar job of backing his country of origin’s fight against the Russian invasion. And his other co-founder has done a stellar job of backing Signal and other privacy-maximizing endeavors.

    There have been a few political office holders who have made use of miles and points games to raise funds and to win elected office.

  2. GUWonder says:
    December 16, 2023 at 3:25 pm

    You left out how the charitable donation thing under SimplyMiles gave you AA Concierge Key status. That was well played.

    I know the story of a person who made over quite the substantial amount in EC261/2004 compensation from award ticket use, but there is no willingness to go on the public record about that. That is a sort of a super successor to people booking travel to rack up bump compensation from oversold domestic US flights.

  3. Arturo S. says:
    December 16, 2023 at 3:27 pm

    I seem to remember many years ago, a Traveler’s Check Company was giving points for buying those checks and they accepted credit cards. He would purchase several thousand dollars worth and get the points and put the money into a savings account. When the CC bill came, he would pay the bill using the money in his account. He would do this many times until they company realized what was going on and stopped it. But by then he had accrued over a million miles.

  4. Tom E says:
    December 16, 2023 at 3:39 pm

    Don’t forget Mr. Pickles and the US Mint/Dollar Coins.

  5. grif305 says:
    December 16, 2023 at 8:02 pm

    It seems to me the Harrier story is from more than 27 hours ago.

  6. Dave says:
    December 16, 2023 at 8:12 pm

    A new spin on manufactured spending.

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About Gary Leff

Gary LeffGary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.

Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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