Federal Judge Says Kansas Surcharge Ban Is Unconstitutional

Law360 (February 26, 2021, 10:15 PM EST) -- A Kansas federal court has found that a state statute prohibiting merchants from imposing a surcharge on customers who pay with credit cards violated the First Amendment rights of a payment processing technology company trying to do business in the state.

U.S. District Judge John W. Broomes said in Thursday's opinion that although the statute prohibits a surcharge, it allows sellers to offer a discount to customers who pay by cash, effectively limiting what plaintiff CardX LLC and merchants can treat as the "regular price" of an item as well as corresponding information about prices and credit card fees that can...

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