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Federal Ruling on California’s Surcharge Ban

The Ninth Circuit Court of Appeals in San Francisco has ruled that California’s 1985 law banning merchants from imposing surcharges on credit card transactions violates the First Amendment of the U.S. Constitution, restricts commercial speech, and does not advance the state’s interest in preventing consumer deception. However, the federal court specified that the First Amendment finding applies only to the five plaintiffs who filed the litigation in 2014. The judges offered the State of California options for preventing consumer deception such as requiring merchants to disclose that the...

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