AmEx class action lawsuit overview:
- Who: A trio of retailers filed a class action lawsuit against American Express Co. and American Express Travel Related Services Co. Inc.
- Why: The retailers claim AmEx’s anti-steering rules, which prohibit merchants from motivating a cardholder to use a cheaper credit card, are the “sole impediment” to actual competition in the payment card industry.
- Where: The class action lawsuit was filed in Massachusetts federal court.
American Express managed to avoid liability despite its anti-steering rules that are the “sole impediment” to actual competition in the payment card marketplace, a new class action lawsuit alleges.
A group of retailers claim AmEx’s anti-steering rules singlehandedly protect the entire payment card industry from competing on merchant swipe fees, a charge retailers pay for processing a debit or credit card transaction.
“If AmEx’s anti-steering rules were rescinded like their competitors’ rules have been, then each payment card network would be forced to compete on price, lest merchants steer customers away from that network’s cards,” the AmEx class action says.
The retailers want to represent a nationwide class of merchants who currently accept AmEx cards via its OptBlue program, as well as merchants who have discontinued accepting AmEx cards within the past four years.
AmEx escapes ‘all responsibility’ for anti-steering rules, class action claims
The retailers argue AmEx escapes “all responsibility” for its anti-steering rules while its competitors have paid billions of dollars in damages settlements and gotten rid of their own anti-steering rules.
“AmEx has remained unscathed, thus far evading all responsibility for its own antisteering rules,” the AmEx class action says.
The retailers claim AmEx violated the Sherman Act. The trio demands a jury trial and requests injunctive relief and an award of damages in an amount to be determined at trial and tripled for themselves and all class members.
A group of 10 small businesses filed a separate AmEx class action lawsuit earlier this year over claims it has swipe fees that are higher than its competitors and is the last to maintain anti-steering rules.
Do you own a business that accepts or has previously accepted AmEx cards? Let us know in the comments.
The plaintiffs are represented by Randy Kassan, Scott C. Harris, Dan K. Bryson and Peggy J. Wedgworth of Milberg Coleman Phillips Bryson Grossman PLLC and Robert W. Cohen of the Law Offices of Robert W. Cohen PC.
The AmEx class action lawsuit is Pizza Hazel, Inc., et al. v. American Express Company, et al., Case No. 1:24-cv-12505, in the U.S. District Court for the District of Massachusetts.
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