I think the couple were right to take this matter to VCAT, despite the obviously unfavourable ruling. Yes, if we look at the agreement the party consented to when they signed up for the Qantas Club annual plan it's quite clear that the membership is only valid for the term they selected (i.e. 1 year). And at the same time, yes Qantas could've made an error in printing out and sending the lifetime kit to the couple. However, when you have agents of Qantas confirming that they won the lifetime membership as part of a draw, that certainly changes things, I would think. Yes you could argue that they may have been dealing with a MOLA (misleading or lying agent), but they are representatives of Qantas and so whatever they say is defacto Qantas' position on the matter. What I suspect prevented them from winning the case, IMHO was not getting a recording of that phone call (perhaps through a subpoena) to prove that the conversation took place. I think everyone on this forum, regardless of what position they take on the matter can agree that everyone makes mistakes, including businesses, and they shouldn't be forced to honour those mistakes. However, the moment a representative of Qantas indicates that this wasn't a mistake and in fact was the result of a draw, then that certainly changes matters.
They won't fly them ever again until Qantas publishes a fare they like!
Completely agree, no one has a right to premium services be it lounges or front cabin just because they are going through a distressing situation. Some folks need to exit this belief of entitlement.
-RooFlyer88