Opinions requested

Aka Ishur

Hi all!

re: Distance selling directive with regards to buying credit for a service over the internet or phone.

Basis:
1) Credits = air miles
2) Bought over the phone.
3) Company selling the miles is U.S. HQ based with offices in EU
4) Flights booked using miles are fully flexible, can be cancelled, and if cancelled the miles are refunded back into the customer account.
5) Miles can be bought at the rate of $15 dollars per 1000 miles.

EUcustomer pays for a flight using 80000 airmiles. He has only 60000miles and so he decides to call the eu office of company and buys the requisite 20000miles at the cost of $300. (The transaction is done in dollars as the miles system is based in U.S.) He then purchases his flight using said miles.

Later that same day Eucustomer decides to cancel the flight and instead of the points back into his account he wants the transaction (buying the miles) cancelled rather than the points refunded to his account.

In the eyes of EUcustomer the miles he used were directly refunded to him, they are the same miles he bought and therefore he should be entitled to a refund and transaction cancelled under the 7 day cooling off period.

In the eyes of the company the miles Eucustomer bought were used and completely different miles were refunded into his account. Therefore the cooling off period does not apply.

Who would be in the better position legally?

MagicSean

In my opinion they are two seperate transactions. One transaction to buy miles and another to use those miles to book flights. Is there anything anywhere in the terms of use that says anything about an entitlement to a cash refund?

Aka Ishur

Sorry MagicSean this is a completely made up scenario. Lets say they dont. I agree that they are 2 seperate transactions. Actually let's say the terms say no refunds are permitted. Does this override your right to a 7 day cool off period?

BornToKill

The cooling off period would not apply to a service which is to be performed on a specific date and so has no application here to the flight element. On the second transaction, I'm not certain that air miles constitute goods.

ResearchWill

If the first transaction is classed as a financial service, it is not then covered. Also the second section of the transaction is transport so I also think that's not covered.