CEO DATELINE - Retail groups decry credit card decision
CEO DATELINE - Retail groups decry credit card decision
- June 26, 2018 |
- Walt Williams
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Two associations representing retailers say they're disappointed with a recent U.S. Supreme Court decision upholding the ability of credit card providers to include contract language barring stores from urging customers to use other credit cards.
The Supreme Court ruled 5-4 Monday that American Express is allowed to use contract language preventing retailers and merchants from steering customers to credit cards that charge lower merchant fees, the Washington Post reported. Critics of contract language contend it is anticompetitive and harms merchants, but a majority of justices said more evidence was needed to show that was the case. https://wapo.st/2KlK5bm
Last week the Supreme Court handed retail industry groups a major victory by ruling that states could collect sales taxes from online purchases, leveling the playing field between brick-and-mortar stores and their online-only counterparts. However, the most recent ruling was a blow to those same groups.
"Today's decision is a loss for American consumers," said Deborah White, Retail Industry Leaders Association general counsel and president of RILA's Retail Litigation Center. "Competition in the credit card space is sorely lacking."
The National Retail Federation also lamented the decision, with Senior Vice President and General Counsel Stephanie Martz calling it "a blow to competition and transparency in the credit card market."
"The American Express rules in question have amounted to a gag order on retailers' ability to educate their customers on how high swipe fees drive up the price of merchandise," Martz said.
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