Recently, the 2nd U.S. Circuit of Appeals in New York has voided a $7.25 billion settlement, the largest all-cash antitrust case in U.S. history. The court cited the misrepresentation of some retailers as the reason for the void. The implications of the outcome are not yet clear, and it is recommended to avoid any third party organizations whose goal is to get consumers to “take action” or sign up for help. Visa and MasterCard had relaxed some rules as part of the settlement that have already been implemented. MSP believes that many of these rules, such as convenience fees, will remain unchanged despite the ruling.
A PYMENTS.com article notes: “One class of merchants were those that accepted Visa or MasterCard from January 2004 to November 2012, while the second class accepted the cards after 2012. This, the judge claims, posed a “fundamental conflict” because the lawyers may have put them in position to negotiate settlement terms that only benefited one of the classes.”
To read the full PYMNTS article, click here.