The proposed settlement of an anti-trust case involving the major card brands and several major card issuers and the nation's retailers has drawn another opponent.
The Retail Industry Leaders Association has come out against the agreement which has been proposed to settle retailer complaints about the way credit card interchange has been calculated and paid.
RILA's members include such diverse firms as Walmart, Abercrombie & Fitch, Apple and Pep Boys. Walmart has already, independently, come out against the agreement.
“While Visa and MasterCard's decision to pursue a settlement affirms the legitimacy of retailers' claims, the flawed proposal upholds the networks' anticompetitive practices and fails to provide retailers and their consumers with meaningful relief from tens of billions of dollars in hidden fees,” said RILA President Sandy Kennedy.
“We urge class plaintiffs to reject the proposal and send a clear message that a settlement that fails to engender competition and fix the broken electronic payments market is unacceptable,” Kennedy said.
If the proposed settlement is ultimately approved, all retailers will be bound by its terms. Among the many proposed terms that concern retailers is the release of Visa and MasterCard from any future legal claims related to their interchange practices and terms that could stifle emerging innovations, such as mobile payments, RILA complained.
“Retailers are concerned that in addition to limiting their future legal options, the proposed settlement preserves the Visa/MasterCard duopoly and constrains emerging innovations that could bring meaningful competition to the marketplace,” added Kennedy.
The National Association of Convenience Stores, the National Grocers Association, the National Cooperative Grocers Association, and the National Community Pharmacists Association have also come out against the proposed settlement.
Industry analysts have expressed confidence that retailers, in the end, will still approve the proposed agreement.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
