Make us your home page
Instagram

Judge gives first approval to settlement over card fees

NEW YORK — A federal judge gave preliminary approval Friday to a $7.2 billion settlement between major credit card companies and retailers over alleged fee-fixing, parties involved in the case said.

Visa, MasterCard and other card companies agreed in July to settle a lawsuit brought by retailers that claimed card issuers conspired to fix the fees they charge stores for accepting credit cards.

The National Retail Federation, representing more than 9,000 retailers across the country, had argued that a provision barring retailers from filing lawsuits over swipe fees was too broad.

Retailers had also argued that the $7.2 billion was far less than what retailers deserved and might have won at trial. The preliminary approval was granted Friday by Judge John Gleeson of Brooklyn federal court, both sides in the case said.

Visa called the settlement a "fair and reasonable compromise." MasterCard also said it was pleased and said a provision in the settlement allowing retailers to charge checkout fees for credit card customers was supported by millions of retailers.

The retail federation repeated its opposition.

"It's a morass of legal flaws, and rather than bringing about reform it would only entrench the anticompetitive behavior of the card companies while putting them beyond the reach of the law," said Mallory Duncan, a federation lawyer.

The federation said it was exploring legal options. Gleeson still must grant final approval to the settlement. MasterCard said it hoped that would happen in the coming months.

Judge gives first approval to settlement over card fees 11/09/12 [Last modified: Friday, November 9, 2012 8:53pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Equifax CEO Richard Smith steps down amid hacking scandal

    Personal Finance

    The chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will retire, effective Tuesday, according to a statement by the company.

    Richard Smith, chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will reportedly retire effective Tuesday.
[File photo: Joey Ivansco/Atlanta Journal-Constitution via AP]
  2. Bass Pro acquires Cabela's for $4 billion

    Retail

    Bass Pro Shops has acquired competitor Cabela's for a reported $4 billion. Bass Pro indicated it is seeking to appeal to all "outdoor enthusiasts" with the move, roping in hunting customers from Cabela's.

    Bass Pro Shops acquired Cabela's for $4 billion, Bass Pro announced Tuesday. | [JAMES BORCHUCK | Times]
  3. Tampa International named among least expensive airports

    News

    TAMPA — Florida airports apparently have a knack for getting it done cheaply.

    According to RewardExpert, Tampa International Airport is the fifth least expensive domestic airport. 
[CHARLIE KAIJO   |   Times
 file photo]

  4. Tampa-based vXchnge secures $200M loan to expand operations

    Corporate

    TAMPA — Tampa-based vXchnge, which operates data centers in 14 metro areas, has secured a loan for roughly $200 million for "major expansions and enhancements."

    Tampa-based vXchnge, a data center provider, secured a $200 million loan. Pictured is CEO Keith Olsen. | [Courtesy of vXchnge]
  5. No toll lanes north of downtown Tampa in three of four interstate proposals

    Transportation

    TAMPA — Express lanes may not be coming to downtown Tampa after all. Or at least not to the stretch of Interstate 275 that goes north through Bearss Avenue.

    Seminole Heights resident Kimberly Overman discusses the new interstate options with V.M. Ybor resident Chris Vela (left), Hillsborough County Commissioner Pat Kemp and HNTB consultant Chloe Coney during a Tampa Bay Express meeting Monday night at the Barrymore Hotel. [CAITLIN JOHNSTON  |  Times]