RILA Announces
Opposition to Flawed Proposed Swipe Fee Settlement Association
urges class plaintiffs to reject the proposal and pursue meaningful market
reforms
Arlington,
VA
–Today the Retail Industry Leaders Association (RILA) criticized the proposed
swipe fee settlement and urged class plaintiffs to reject the proposal.
Announced in July, the proposed settlement stems from lawsuits challenging the
anticompetitive swipe fee practices of Visa and MasterCard.
“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.”
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.
“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.
RILA joins
numerous other organizations speaking out in opposition to the proposal,
including the National Association of Convenience Stores, the National Grocers
Association, the National Cooperative Grocers Association, and the National
Community Pharmacists Association.
RILA is the trade
association of the world’s largest and most innovative retail companies. RILA
members include more than 200 retailers, product manufacturers, and service
suppliers, which together account for more than $1.5 trillion in annual sales,
millions of American jobs and more than 100,000 stores, manufacturing facilities
and distribution centers domestically and abroad.
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