Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Friday, May 24, 2013

Big retailers pull out of $7B credit card fee settlement

Some of the country's largest retailers, including Target Corp. and Macy's Inc., on Thursday filed a lawsuit against MasterCard and Visa, rejecting a settlement reached last year over alleged fee-fixing.

A larger group of 19 trade associations and retail companies originally filed suit against the card processing companies in 2005, claiming that they conspired to fix the fees they charge stores for handling payments made with credit cards.

$7 billion settlement

A $7.2 billion settlement was reached in July, but some of the retailers rejected it, partially because it includes a provision barring retailers from filing future lawsuits over swipe fees. Some retailers also have argued that the settlement amount was far less than what they deserved and might have won at trial.

Earlier this week, the National Retail Federation, which represents more than 9,000 retailers across the country, urged its members to reject the settlement, in part, because of the provision barring future lawsuits.

The retailers involved in the new lawsuit, filed in U.S. District Court in Manhattan, also include TJX Cos., Office Depot Inc., Kohl's Corp., Abercrombie & Fitch Co. and several others.

Visa spokesman Will Valentine declined comment, while MasterCard spokesman Jim Issokson would only say that his company remains confident that the settlement will ultimately be approved.

Trish Wexler, a spokeswoman for the Electronic Payments Coalition, which counts the companies among its members, said the lawsuit didn't come as a surprise and was the next natural step for retailers opting out of the settlement.

Other retailers have until Tuesday to opt out of the agreement so they can pursue their own legal action. Retailers who do not opt out by the deadline will automatically be considered to have accepted the settlement.

In afternoon trading, Visa Inc. shares fell $2.13 to $178.01, while MasterCard Inc. shares fell $7.89 to $568.82.

Original Article
Source: CBC
Author: AP

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