A judge is allowing small businesses to sue the major credit card companies for forcing them to adopt chip readers at the checkout counter — a case that could become a multi-billion-dollar class action.
The lawsuit takes aim at the nationwide upgrade to chip-based credit cards, an awkward rollout that’s been annoying for stores and shoppers.
Customers have found the system confusing. And it’s much slower to process transactions than the old magnetic stripe cards.
To business owners, it’s a raw deal. They were forced to upgrade to expensive machines that reduce fraud but don’t eliminate it. If they don’t upgrade, they’re penalized by the credit card companies. Stores that don’t install chip readers are on the hook whenever a shopper swipes a stolen credit card — a burden previously shouldered by banks.
The lawsuit, brought by four grocery stores in California, Florida and New York, calls it an industry conspiracy that violates fair trade practices. They sued American Express, Discover, MasterCard and Visa in California federal court in March.
The grocery store owners have yet to be granted class action status. If they are, the case could include 8 million small businesses across the United States, according to lawyers involved in the case.
They’re seeking to recoup the costs of upgrading to the chip system, an estimated $6 billion, according to the lawsuit.
Full Content: East Idaho News
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
YouTube CEO Argues Google’s Innovation, Not Monopoly, Drove Ad Tech Success
Sep 16, 2024 by
CPI
Samsung, Xiaomi Among Smartphone Brands Allegedly Involved in eCommerce Collusion In India
Sep 16, 2024 by
CPI
Appeals Court Sides with Exxon, Chevron in Price-Fixing Lawsuit
Sep 16, 2024 by
CPI
Nvidia Faces Antitrust Lawsuit in Strategic Filing Move by Xockets Inc.
Sep 16, 2024 by
CPI
UK Competition Regulator to Reform Pay System Amid Bias Allegations
Sep 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
Francisco Javier Núñez Melgoza
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
Julio Garcia
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
Alejandra Palacios Prieto
The Cost of Making COFECE Disappear
Sep 3, 2024 by
Mateo Fernández