The Retail Industry Leaders
Association (RILA) issued the following statement in advance of the submission
of the proposed class action interchange fee settlement to the court for
preliminary approval. The proposed settlement stems from lawsuits challenging
the anticompetitive swipe fee practices of Visa and MasterCard.
Lawyers purporting to
represent the merchant community have indicated that they will submit the
proposed settlement to the court for preliminary approval on Friday, October
12. The proposed settlement is due to be submitted to the court by
October 19. Once submitted, merchants objecting to the deal will have 30
days to submit arguments urging the court to reject the proposal.
greatly underestimated the outrage among retailers over this flawed proposed
said RILA President Sandy Kennedy.
“Retailers overwhelmingly view this proposal not as a settlement, but as
“The proposed class
action settlement not only preserves the broken debit and credit markets, but
it also denies retailers their future legal rights and effectively forces
merchants to fund the settlement through unrestrained interchange fees in
perpetuity. The proposal is unacceptable in every way and we look forward to
making our case to the courts.”
RILA joins numerous other
organizations speaking out in opposition to the proposal, including a majority
of the named class plaintiffs.
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.