- Cozen O’Connor State AG Group Co-Chair Bernie Nash and Associate Keturah Taylor obtained an important judgment on behalf of Chicago-based payments technology company CardX, LLC in its suit challenging Kansas’s law prohibiting credit card surcharging (“no-surcharge law”), in which the court declared that the no-surcharge law is unconstitutional as applied to CardX’s surcharging model.
- The complaint alleged that the no-surcharge law violated CardX’s rights under the First Amendment by prohibiting CardX from communicating a credit card surcharge to consumers via its patent-pending software while allowing merchants to offer “cash discounts,” thereby controlling the manner in which prices are communicated to consumers, among other things.
- Judge John Broomes of the U.S. District Court for the District of Kansas ruled that the law unjustifiably restricts CardX’s commercial speech in violation of the First Amendment and issued a declaratory judgment to that effect.