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SCOTUS Rules Statute Banning Credit-Card Surcharges Regulates Speech

Expressions Hair Design v. Schneiderman is the Supreme Court’s first First Amendment free speech ruling since Reed v. Town of Gilbert, Arizona (2015), where the Supreme Court defined content-based speech very broadly and held it is subject to strict (usually fatal) scrutiny. The Court didn’t cite to Reed in its opinion in this newly decided case.

The Court held unanimously that a New York statute prohibiting vendors from advertising a single price, and a statement that credit card customers must pay more, regulates speech under the First Amendment. The State and Local Legal Center (SLLC) filed an amicus brief in this case arguing this law doesn’t violate the First Amendment because it regulates conduct rather than speech.

When customers pay with a credit card, merchants must pay a transaction fee to the credit card company. Some merchants want to pass this fee along to credit card customers. But a New York statute states that “[n]o seller in any sales transaction may impose a surcharge on a [credit card] holder who elects to use a credit card in lieu of payment by cash, check, or similar means.” Twelve states have adopted credit-card surcharge bans. Continue reading