Protect Your Points Act of 2026
- Sponsor
- Sen. Durbin, Richard J. [D-IL]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Mar 26, 2026
Bottom line
The 'Protect Your Points Act of 2026' aims to enhance consumer rights and transparency within airline loyalty programs by imposing new disclosure, transferability, and notice requirements on air carriers.
What it actually does
This bill amends title 49, United States Code, to establish new consumer protections for frequent flyer programs and co-branded credit cards. It mandates transparency requirements for point values and redemption rates, prohibits expiration dates on points, requires free transferability of points between program participants, and allows for combined dollar and point payments for airfare. Additionally, it requires a minimum one-year notice for any changes to terms of service or point devaluation by covered air carriers.
Proponents argue
Proponents argue that the bill is essential to protect consumers from opaque and often unfair practices within frequent flyer programs, which can lead to the devaluation or loss of accrued loyalty points. They contend that mandating clear disclosures, preventing point expiration, and ensuring transferability will restore trust and fairness, making these programs more valuable and predictable for travelers. Supporters also highlight the need for greater security measures for loyalty accounts.
Opponents contend
Opponents may argue that the bill imposes overly burdensome regulations on air carriers and credit card issuers, potentially stifling innovation and increasing operational costs. They might contend that such prescriptive rules could force airlines to reduce the generosity of their loyalty programs or pass increased costs onto consumers through higher fares or fees. Critics could also argue that existing market competition and self-regulation are sufficient to address consumer concerns.
The bill is relatively short and clearly structured, making it accessible for an informed reader to understand its core provisions within a reasonable timeframe.
Section 2(a), adding 49 U.S.C. 42309(a)(1)
Value Disclosure for Points and Miles
This provision requires covered air carriers to prominently display the financial value of one point or mile on their websites and mobile applications. If values differ across co-branded credit cards or loyalty tiers, all differing values must be displayed centrally. This information must be updated in real time to reflect any changes.
Supporters argue
Proponents argue that this provision empowers consumers by providing clear, real-time information about the actual worth of their loyalty points, enabling them to make more informed decisions about earning and redeeming rewards. This transparency combats deceptive practices and builds consumer trust.
Critics contend
Opponents may argue that determining and constantly updating a single 'financial value' for a point is complex and potentially misleading, as point values can fluctuate based on redemption options (e.g., flight class, destination, time of booking). They might also cite the significant technical and operational challenges of implementing real-time, comprehensive disclosures across all platforms.
Tradeoffs
This provision balances consumer demand for transparency against the operational complexities and potential for dynamic point values in loyalty programs. It seeks to provide clarity but may face challenges in accurately reflecting the multifaceted value of points.
Section 2(a), adding 49 U.S.C. 42309(a)(2)
Prohibition on Point Expiration
This provision prohibits covered air carriers from placing an expiration date on any points, miles, or other accrued value offered in connection with a frequent flyer program. This means points, once earned, would remain valid indefinitely.
Section 2(a), adding 49 U.S.C. 42309(a)(3)
Mandatory Point Transferability
This provision requires covered air carriers to allow consumers to transfer any amount of their points or miles to another participant of the same frequent flyer program, chosen by the consumer. The transferred points must retain their original value, and airlines are prohibited from limiting the number of points transferred (except for fraud protection) or imposing fees or penalties for such transfers.
Section 2(a), adding 49 U.S.C. 42309(a)(4)
Prohibition on Redemption Fees
This provision prohibits covered air carriers from imposing any fee or penalty on consumers to access, use, redeem, or redeposit points, miles, or other accrued value. This targets fees often charged for booking award travel or changing award reservations.
Section 2(a), adding 49 U.S.C. 42309(a)(5)
Concurrent Display of Airfare Value
Within one year, covered air carriers must display the cost of airfare and ancillary fees in both dollar value and point/mile value on any travel booking page. This information must be displayed concurrently, without requiring the consumer to switch between display methods, and updated in real time.
Section 2(a), adding 49 U.S.C. 42309(a)(6)
Display of Redemption Rates
Within one year, covered air carriers must display on their website and mobile application the percentage rate of points or miles that consumers successfully used or redeemed in the preceding 12 months. This percentage rate must be updated annually.
Section 2(a), adding 49 U.S.C. 42309(a)(7)
Combined Dollar and Point Payment Options
Within one year, covered air carriers must offer consumers the ability to purchase airfare or other ancillary fees using any combination of dollars and points or miles. This allows for partial payment with points.
Section 2(a), adding 49 U.S.C. 42309(a)(8)
Frequent Flyer Account Security
Within 90 days, covered air carriers must require multi-factor authentication (MFA) for access to frequent flyer program accounts. Additionally, they must implement other reasonable data security protections as required by the Secretary of Transportation.
Section 2(b), adding 49 U.S.C. 42309(b)(1) and (2)
One-Year Notice for Program Changes and Devaluation
This provision prohibits covered air carriers from changing terms of service, contracts of carriage, or other customer agreements for frequent flyer programs or co-branded credit cards without providing at least one year's notice to consumers. It also requires a minimum one-year notice before any action that would devalue accrued points or miles, including decreasing dollar value, eliminating, reducing, suspending, forfeiting, invalidating, or imposing new limits or expenses on their use or redemption.
The bill allows covered air carriers to limit the number of points, miles, or other accrued value that a consumer may transfer to another participant of the frequent flyer program, but only 'to protect a consumer from fraud or scams as prescribed by regulation.'
Section 2(a), adding 49 U.S.C. 42309(a)(3)(B)(i)
Why it matters:This is standard legislative practice to include necessary carve-outs for legitimate concerns like fraud prevention, rather than detailing every exception in the main text. It delegates the specifics to future regulation.
Case for: This exception is crucial for maintaining the integrity of frequent flyer programs and preventing illicit activities like the sale of points on black markets, which could undermine the program's value and lead to financial losses for airlines. It allows for necessary safeguards while still promoting legitimate transfers.
Case against: Critics might argue that without clear definitions and strict oversight, this 'fraud or scams' exception could be broadly interpreted by airlines to impose arbitrary limits on transfers, effectively undermining the bill's intent for free transferability. The phrase 'as prescribed by regulation' leaves significant power to the Secretary of Transportation.
Estimated impact: Potentially significant, as the scope of this exception will determine the true extent of point transferability. If broadly interpreted, it could limit consumer flexibility; if narrowly, it maintains the bill's intent.
In carrying out the notice requirements for changes to terms of service and point devaluation, the Secretary of Transportation 'shall coordinate with the Director of the Consumer Financial Protection Bureau and the Commissioners of the Federal Trade Commission, as necessary.'
Section 2(b)(3), adding 49 U.S.C. 42309(b)(3)
Why it matters:This is a standard inter-agency coordination clause, often included to ensure consistent regulatory approaches across different federal bodies with overlapping jurisdiction, particularly in consumer protection and financial services.
Case for: This coordination ensures that the Department of Transportation's regulations regarding loyalty programs are consistent with broader consumer protection principles enforced by the CFPB and FTC. It leverages the expertise of these agencies in financial products and unfair trade practices, leading to more robust and harmonized consumer safeguards.
Case against: Some might argue that requiring coordination could slow down the regulatory process, as multiple agencies need to align. Others might contend that it could lead to jurisdictional disputes or an overreach of authority by agencies not primarily focused on aviation.
Estimated impact: Potentially significant, as it brings the expertise and enforcement power of the CFPB and FTC into the regulation of airline loyalty programs, which often have financial product characteristics (e.g., co-branded credit cards).