1 00:00:00,040 --> 00:00:03,000 Speaker 1: Now it's time for our daily Bloomberg Law Brief, exploring 2 00:00:03,080 --> 00:00:05,640 Speaker 1: legal issues in the news. Today, a Bloomberg Law hosts 3 00:00:05,720 --> 00:00:09,000 Speaker 1: Drew june Grosso and Greg Store discussed the Supreme Court 4 00:00:09,000 --> 00:00:12,760 Speaker 1: case Expression Hair designed the Schneiderman, which involves a New 5 00:00:12,840 --> 00:00:16,279 Speaker 1: York law concerning credit card interchange fees. They speak to 6 00:00:16,440 --> 00:00:21,360 Speaker 1: Rebecca Tushnet, a professor at Georgetown University. Rebecca, let me 7 00:00:21,400 --> 00:00:24,000 Speaker 1: start with, can you just tell us what this law 8 00:00:24,120 --> 00:00:28,960 Speaker 1: actually does? Well, So this is actually one of the 9 00:00:29,040 --> 00:00:34,360 Speaker 1: larger issues looming, which is what the the what conducts 10 00:00:34,360 --> 00:00:38,520 Speaker 1: the law prohibits um At the end of this litigation, 11 00:00:38,680 --> 00:00:42,760 Speaker 1: New York has taken the position that the only thing 12 00:00:42,800 --> 00:00:46,440 Speaker 1: it really prohibits is putting one price on say the 13 00:00:46,479 --> 00:00:50,320 Speaker 1: package or the self, and then charging an additional price 14 00:00:50,600 --> 00:00:52,919 Speaker 1: when you go up to the counter if you try 15 00:00:52,960 --> 00:00:56,480 Speaker 1: and use a credit card. However, there have been different 16 00:00:56,520 --> 00:01:00,360 Speaker 1: interpretations in the past. Sometimes, uh New York has tried 17 00:01:00,400 --> 00:01:04,520 Speaker 1: to say that it prohibits listing to prices, but saying 18 00:01:04,560 --> 00:01:08,720 Speaker 1: that one is a credit card Searcharge, Rebecca, doesn't really 19 00:01:08,800 --> 00:01:11,680 Speaker 1: matter what you call it. If if you go up 20 00:01:11,680 --> 00:01:17,160 Speaker 1: to a register and it says discount for cash doesn't 21 00:01:17,160 --> 00:01:20,280 Speaker 1: that hit the consumer, you know, equally, as if if 22 00:01:20,440 --> 00:01:24,440 Speaker 1: they say, searcharge for credit cards. What's the difference. So 23 00:01:24,640 --> 00:01:28,800 Speaker 1: it depends if there was one price on the sticker, 24 00:01:29,000 --> 00:01:31,280 Speaker 1: you know, at the when you picked it up, you 25 00:01:31,319 --> 00:01:34,400 Speaker 1: get up the register and they say, hey, actually we'll 26 00:01:34,400 --> 00:01:36,479 Speaker 1: give you a three percent discount if you pay with cash. 27 00:01:36,720 --> 00:01:39,600 Speaker 1: That's a happy surprise. It doesn't really implicate any consumer 28 00:01:39,640 --> 00:01:44,280 Speaker 1: protection questions. It doesn't fool you into acting in a 29 00:01:44,319 --> 00:01:47,039 Speaker 1: way that would be against your interest. If there's one 30 00:01:47,080 --> 00:01:49,560 Speaker 1: price on the package and use up to the register 31 00:01:49,920 --> 00:01:51,920 Speaker 1: and pull out credit cards and they say, oh, actually 32 00:01:52,040 --> 00:01:54,320 Speaker 1: it's gonna be three percent more than that, that raises 33 00:01:54,360 --> 00:01:59,040 Speaker 1: false avertising concerns. You've been bated, uh into thinking you're 34 00:01:59,040 --> 00:02:01,040 Speaker 1: going to get one thing, and at the counter they 35 00:02:01,080 --> 00:02:04,200 Speaker 1: switched to a different, higher price. So uh, they are 36 00:02:04,640 --> 00:02:08,480 Speaker 1: in some sense identical in terms of the ultimate price 37 00:02:08,480 --> 00:02:11,720 Speaker 1: if you set them right, but they offer different opportunities 38 00:02:11,800 --> 00:02:15,959 Speaker 1: for surprise and potentially harm the other thing. And this 39 00:02:16,040 --> 00:02:18,840 Speaker 1: is a controversial. Part of the case is that a 40 00:02:18,919 --> 00:02:22,800 Speaker 1: lot of people think that people reacted differently when you 41 00:02:22,840 --> 00:02:26,160 Speaker 1: describe something as a discount versus as a surcharge. I'm 42 00:02:26,200 --> 00:02:28,840 Speaker 1: a little skeptical of this, at least in the way 43 00:02:28,960 --> 00:02:32,840 Speaker 1: that New York now says It's law will operate, because 44 00:02:33,080 --> 00:02:34,880 Speaker 1: New York says, as long as you show them the 45 00:02:34,880 --> 00:02:37,680 Speaker 1: two prices, you can describe it as anything you want. 46 00:02:38,440 --> 00:02:41,800 Speaker 1: That's Rebecca to say, professor at Georgetown University, speaking to 47 00:02:41,800 --> 00:02:44,560 Speaker 1: Bloomberg Law host June Grosso and Greg Store. You can 48 00:02:44,600 --> 00:02:47,040 Speaker 1: listen to Bloomberg Law What Days at one pm Wall 49 00:02:47,080 --> 00:02:50,359 Speaker 1: Street Time here on Bloomberg Radio Now among the town 50 00:02:50,480 --> 00:02:53,799 Speaker 1: legal stories from Bloomberg Law. US prosecutors have charged three 51 00:02:53,800 --> 00:02:56,280 Speaker 1: former traders at the heart of an investigation into the 52 00:02:56,400 --> 00:02:59,080 Speaker 1: rigging of currency rates. It suspects all live in the 53 00:02:59,160 --> 00:03:01,800 Speaker 1: UK and you to work for JP Morgan, City Group 54 00:03:01,840 --> 00:03:05,600 Speaker 1: and Barclay's. An indictment says they used an online chat 55 00:03:05,680 --> 00:03:09,040 Speaker 1: room they called the Cartel to manipulate prices of currencies. 56 00:03:09,080 --> 00:03:12,680 Speaker 1: British authorities have decided not to bring churches. A federal 57 00:03:12,720 --> 00:03:15,760 Speaker 1: investigator has found the JP Morgan wrongfully fired a financial 58 00:03:15,800 --> 00:03:18,720 Speaker 1: advisor who complained he was pressured to sell the bank's 59 00:03:18,720 --> 00:03:22,320 Speaker 1: own investment products. The Occupational Safety and Health Administration has 60 00:03:22,360 --> 00:03:26,040 Speaker 1: awarded Johnny Burris a hundred sixty four thousand dollars. JP 61 00:03:26,160 --> 00:03:30,480 Speaker 1: Morgan says it will appeal. That's this morning's Bloomberg Law Brief. 62 00:03:30,480 --> 00:03:32,760 Speaker 1: You can find more legal news at Bloomberg law dot 63 00:03:32,840 --> 00:03:36,160 Speaker 1: com and Bloomberg Bienna dot com. Attorneys will find exceptional 64 00:03:36,240 --> 00:03:39,920 Speaker 1: legal research and business development tools there as well. Visit 65 00:03:39,960 --> 00:03:43,200 Speaker 1: Bloomberg Law dot com and Bloomberg Bienna dot com for 66 00:03:43,320 --> 00:03:44,360 Speaker 1: more information.