Supreme Court ruling revives debit fee lawsuit; old agency rules now challengeable, broad impact.

Supreme Court ruling revives debit fee lawsuit; old agency rules now challengeable, broad impact.
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The U.S. Supreme Court recently revived a lawsuit brought by a North Dakota truck stop, challenging the fees that banks can charge for debit-card transactions. Here are the key points:

  • Background:
    • The case involves a legal challenge to a Federal Reserve regulation on debit card “swipe fees”.
    • These fees reimburse banks for the costs associated with offering debit cards.
    • The Fed rule sets a cap of 21 cents per transaction for these fees.
  • Corner Post Lawsuit:
    • Corner Post, the North Dakota convenience store, filed the lawsuit.
    • The store argued that it should not be bound by the six-year statute of limitations for challenging the 2011 regulation.
    • Corner Post opened for business in 2018, after the deadline had passed.
  • Supreme Court Decision:
    • The Supreme Court ruled 6-3 in favor of Corner Post.
    • This decision could have broader implications for other government regulations.
    • It suggests that even old agency rules can be challenged if they produce contemporary harm.
  • Deeper Implications:
    • Legal experts, including Steve Vladeck, emphasize the significance of this ruling.
    • It comes after the Court’s decision to overrule Chevron, allowing challenges to old rules.
    • The ruling may expand the class of potential challengers to government regulations.

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In summary, the Supreme Court’s decision has implications beyond swipe fees, potentially affecting other regulatory challenges.

Sources:

www.fastcompany.com/91149595/supreme-courts-ruling-swipe-fees-could-make-easier-businesses-challenge-federal-rules



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