American Airlines, Inc. v. Wolens, 513 U.S. 219, 6 (1995)

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224

AMERICAN AIRLINES, INC. v. WOLENS

Opinion of the Court

The Morales opinion presented much more, however, in accounting for the ADA's preemption of the state regulation in question. The opinion pointed out that the concerned federal agencies—the Department of Transportation (DOT) 2 and the Federal Trade Commission (FTC)—objected to the NAAG fare advertising guidelines as inconsistent with the ADA's deregulatory purpose; both agencies, Morales observed, regarded the guidelines as state regulatory measures preempted by the ADA. See id., at 379 (DOT and FTC); id., at 386 (DOT); id., at 390 (FTC). Morales emphasized that the challenged guidelines set "binding requirements as to how airline tickets may be marketed," and "imposed [obligations that] would have a significant impact upon . . . the fares [airlines] charge." Id., at 388, 390. The opinion further noted that the airlines would not have "carte blanche to lie and deceive consumers," for "the DOT retains the power to prohibit advertisements which in its opinion do not further competitive pricing." Id., at 390-391. Morales also left room for state actions "too tenuous, remote, or peripheral . . . to have pre-emptive effect." Id., at 390 (internal quotation marks omitted).

B

The litigation now before us, two consolidated state-court class actions brought in Illinois, was sub judice when we decided Morales. Plaintiffs in both actions (respondents here) are participants in American Airlines' frequent flyer program, AAdvantage. AAdvantage enrollees earn mileage credits when they fly on American. They can exchange those credits for flight tickets or class-of-service upgrades. Plaintiffs complained that AAdvantage program modifications, instituted by American in 1988, devalued credits AAd-2 Deceptive trade practices regulatory authority formerly residing in the CAB was transferred to the DOT when the CAB was abolished in 1985. Civil Aeronautics Board Sunset Act of 1984, Pub. L. 98-443, § 3, 98 Stat. 1703; 49 U. S. C. App. § 1551.

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