U.S. judge blocks New York credit card surcharge law
By Jonathan Stempel
NEW YORK, Oct 3 (Reuters) - In a decision with possible broad implications for U.S. consumers and retailers, a federal judge has blocked enforcement of a New York state law that bans merchants from imposing surcharges on customers who pay by credit card rather than cash.
Supporters of the decision by U.S. District Judge Jed Rakoff in Manhattan said it could make it easier for retailers to transact with customers, and make customers better understand the costs of making purchases with credit cards.
Rakoff agreed with several retailers that the law, which carries potential criminal penalties including prison, violated their free speech rights under the First Amendment because it prohibits them from telling customers about the extra costs of paying with plastic.
The law "perpetuates consumer confusion by preventing sellers from using the most effective means at their disposal to educate consumers about the true costs of credit-card usage," Rakoff wrote in a 35-page decision on Thursday.
Read more at http://www.reuters.com/article/2013/10/03/creditcard-surcharges-lawsuit-idUSL1N0HT18B20131003