The loss of the ability to show up in Los Angeles by the decree of nefarious actors and as the result of some type of urban street law violation (as in the movie Pulp Fiction) is one use of this phrase; more generally it can also refer to a loss of any nature due to bad behavior.
My kids are incorrigible which is typical for little kids “I told my little girl last weekend that if she continued to sass me she was going to lose her L.A. Privileges”. The potential loss of L.A. Privileges got her attention.
by Jahedg September 6, 2011