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