In a bold move, the National Retail Federation (NRF) is challenging a proposed settlement in a class-action lawsuit over credit card “swipe” fees, arguing it falls short of addressing key issues. NRF asserts the settlement, negotiated without significant input from major retailers or their advocates, fails to tackle anticompetitive practices by Visa and Mastercard.
The proposal, which aims to reduce fees marginally, is deemed inadequate, especially considering the substantial financial burden these fees impose on businesses and consumers.
Despite projected savings, the NRF contends the reduction is insignificant compared to the overall volume of fees. Additionally, the settlement’s restrictive terms, including a ban on future litigation and lack of opt-out provisions, raise concerns about fairness and potential violations of antitrust laws. NRF advocates for the Credit Card Competition Act, emphasizing the need for legislative action to foster competition and address the longstanding issues surrounding swipe fees. This legal challenge underscores the ongoing battle between retailers and credit card companies over transaction costs, highlighting the complexities of the retail landscape.
