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Lexology: “1st Amendment Win for Credit Card Surcharges”

“Cozen O’Connor State AG Group Co-Chair Bernie Nash and Associate Keturah Taylor obtained an important judgment on behalf of Chicago-based payments technology company CardX, LLC in its suit challenging Kansas’s law prohibiting credit card surcharging (‘no-surcharge law’), in which the court declared that the no-surcharge law is unconstitutional as applied to CardX’s surcharging model.

The complaint alleged that the no-surcharge law violated CardX’s rights under the First Amendment by prohibiting CardX from communicating a credit card surcharge to consumers via its patent-pending software while allowing merchants to offer ‘cash discounts,’ thereby controlling the manner in which prices are communicated to consumers, among other things.

Judge John Broomes of the U.S. District Court for the District of Kansas ruled that the law unjustifiably restricts CardX’s commercial speech in violation of the First Amendment and issued a declaratory judgment to that effect.”

Read the full article here.