Restaurant Group Rejects Settlement Proposal
Sept. 27, 2012
A group representing nearly one million U.S. restaurant locations is the most recent retailer trade association to publicly oppose the proposed settlement of long-running antitrust litigation between merchants and credit card networks and issuers regarding the way they set interchange rates. The National Restaurant Association, one of the 19 original plaintiffs in the class action lawsuit, joins a growing list of national retailers and retail trade groups that has expressed concern with the $7.25 billion settlement proposal .
“There is strong concern that the proposed settlement agreement will not achieve the litigation’s most critical goal—to fundamentally change a broken marketplace in which swipe fees are set,” said Dawn Sweeney, president and CEO of the National Restaurant Association. “Without meaningful reform, there is concern that restaurateurs—many of whom are small businesses—will continue to be negatively impacted by the unfair, non-transparent system that exists today.”
Sweeney’s group announced its dissatisfaction with the settlement proposal less than a week after nine trade groups representing a range of retailers notified U.S. Congressional leaders of their thoughts on the matter.