Expressions Hair Design v. Schneiderman
Issues
Does New York’s no-surcharge law (N.Y. Gen. Bus. Law § 518), which requires merchants to label price differences as a cash “discount” rather than a credit-card “surcharge,” unconstitutionally restrict speech?
The Court must consider whether New York’s surcharge ban that requires merchants to label price differences as a cash discount rather than a credit-card surcharge unconstitutionally restricts speech. Petitioners Expressions Hair Design et al. argue that criminalizing truthful speech about credit-card costs violates the First Amendment because it prevents the free flow of accurate ideas amongst the public. Eric T. Schneiderman, in his official capacity as Attorney General of the State of New York, on the other hand, asserts that the law regulates conduct and not speech; thus, the price controls fall outside of the ambit of the First Amendment entirely. The outcome of this case will impact how a state can restrict the actions and language of merchants with respect to different forms of payments by consumers.
Questions as Framed for the Court by the Parties
Whether New York’s regulation of the conditions under which sellers differentiate prices charged to consumers paying by credit card and consumers paying by other means, N.Y. Gen. Bus. Law § 518, is subject to scrutiny under, and consistent with, the First Amendment.
Whenever a consumer uses a credit card to make a purchase, the merchant is charged a swipe fee. Expressions Hair Design v. Schneiderman, 808 F.3d 118, 122 (2d Cir. 2015). Merchants typically pass on these charges to consumers through higher prices regardless of whether they pay by credit card or not.
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Additional Resources
- Dani Kass, High Court to Review NY Law Banning Credit Card Surcharges, Law360 (Sept. 29, 2016).
- Greg Stohr, Credit-Card Surcharge Laws Draw Review at U.S. High Court, Bloomberg Politics (Sept. 29, 2016).