NEW YORK -- Merchant associations opposing the Visa Inc. and MasterCard Inc. multibillion-dollar settlement of swipe-fee price-fixing claims won't be held in contempt by a federal judge for failing to fully correct websites he found misleading, said a Bloomberg report.
U.S. District Judge John Gleeson in Brooklyn, N.Y., in mid-April said that merchant groups involved in the case must correct information on websites intended to encourage retailer opposition to the class-action settlement.
On April 11, Gleeson said that the sites contained "bad information" that may have persuaded some merchants to drop out of the settlement and he ordered the groups to make corrections. One of the sites, Merchantsobject.com, continued to "obfuscate" key points as of April 24, the judge said in a written order that day.
Gleeson told the groups that their websites should carry disclaimers that changes were ordered, describe the consequences of opting out of the settlement and prominently display the web address of an official court-approved public information site, www.paymentcardsettlement.com.
Several of the merchant groups, including NACS, this week posted such notices on their websites.
On Friday, Gleeson said that he would "give the benefit of the doubt" to trade associations opposing the agreement and told them they should better police the websites for misstatements, the report said.
"I think there's a powerful incentive for the objectors to be sure they're not basing their argument on ground that's not so firm," Gleeson said.
The estimated $7.25 billion settlement would end an eight-year legal battle over Visa and MasterCard's interchange or "swipe" fees. The plaintiffs in the case accused the companies of illegally fixing the fees charged merchants when customers pay with credit cards.
Settlement Opponents
A group of trade associations and large retailers, including Walmart and Target, oppose the settlement, saying the card companies would be given too much leeway to raise rates in the future.
Retailers who chose to drop out of the deal based on what the judge described as misleading information on the sites may still have an opportunity to receive payments, Gleeson said Friday.
"There will be a remedy for that," He said, adding that the specifics would be determined later. A hearing on final approval of the settlement is scheduled for Sept. 12, said the report.
The case is In re Payment Card Interchange Fee & Merchant Discount Antitrust Litigation, U.S. District Court, Eastern District of New York (Brooklyn).
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