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US: Antitrust trial begins against three major credit card cos

By  |  January 8, 2013

Trial proceedings have officially begun in New York for an antitrust case against three of the US’s major credit card companies. Monday marked the trial’s beginnings against American Express Co., Discover Financial Services and Citigroup Inc., all of which face charges in two antitrust class action lawsuits filed by consumers regarding the companies’ policies to force their customers to sign arbitration agreements to get credit cards. Signing the arbitration contract essentially makes individual claims against a company more costly and burdensome, according to consumer advocates. The suits were filed in 2004 and 2005; no damages are being sought, though plaintiffs are asking US District Judge William Pauley to order the companies to nix the arbitration agreements, as well as impose an eight-year ban on arbitration clauses for the three.

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