Ruling on Credit Card Fees: California's Prohibition on Surcharges Declared Unlawful
**Headline:** California Court Ruling and First Amendment Implications Shape Credit Card Surcharges, While Texas Social Media Law Remains Controversial
**Subhead:** A comprehensive look at the latest developments in credit card surcharges and social media regulations across the United States.
The recent California Court of Appeal's decision in Joaquin v. City of Los Angeles does not directly relate to the Texas social media law, but both cases highlight the ongoing debate surrounding freedom of speech and business regulation.
In California, the legality and regulation of credit card surcharges have been shaped by a mix of state laws and federal court rulings, particularly those concerning the First Amendment. The most significant recent development is the Supreme Court case *Expressions Hair Design v. Schneiderman*, which ruled that state laws requiring particular forms of disclosure for credit card surcharges can violate the First Amendment's protection of commercial speech.
As a result, the enforcement of these mandates is now left to individual states, which may choose whether to maintain or adjust their disclosure laws. In California, businesses may still be required to disclose surcharge policies to consumers, but the specific manner of disclosure is no longer strictly regulated at the state level if such regulations are found to infringe on commercial speech rights.
Meanwhile, the Texas social media law is a state-level regulation that deals a blow to big internet corporations that claim their content moderation choices are protected by the US Constitution. Despite opposition from these corporations, the Texas law, which pertains to political messages, is currently in effect.
In a separate case, five California businesses sued in 2014, claiming the state's law prohibiting businesses from charging customers extra for using credit cards violates the First Amendment by restricting commercial speech. However, the California Court of Appeal held that California Civil Code Section 1748.1(a), which has been effective since 1985 and prohibits businesses from imposing a surcharge on credit card users, does not violate the First Amendment.
The Texas and California laws serve as examples of the ongoing debate surrounding the balance between business regulation and freedom of speech. While the specifics of each law may differ, both cases underscore the importance of understanding the evolving legal landscape for businesses.
**Key Takeaway**
Businesses in California and other states must stay informed about both state legislation and evolving federal court interpretations of the First Amendment as they relate to credit card surcharging and disclosure practices. Meanwhile, the Texas social media law remains a topic of contention for big internet corporations. Understanding these developments can help businesses navigate the complex regulatory environment and make informed decisions about their pricing and content moderation policies.
- In California, the regulation of credit card surcharges, a financial aspect of businesses, has been influenced by a blend of state laws and federal court rulings, particularly those related to the First Amendment's protection of commercial speech.
- Meanwhile, the Texas social media law, a regulatory measure, poses challenges for large internet corporations, as it impacts their content moderation, a key business function.
