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Law Firm Investigating Potential for Class Action Suit Against Rite Aid and CVS for Blocking Apple Pay
Law firm Schubert Jonckheer & Kolbe, specializing in class action lawsuits, has announced that it has launched an antitrust investigation into CVS and Rite Aid over their decision to stop accepting Apple Pay in their retail stores.
The firm says that it is looking into a potential class action lawsuit that would aim to restore Apple Pay at CVS and Rite Aid stores, and it is currently asking to speak with consumers who may have been affected by the stores' decision to stop offering the payment method.
MCX has confirmed that all of its retail members, including CVS and Rite Aid, are subject to exclusivity agreements that prevent them from accepting alternate forms of payment, but all MCX members are free to leave the group at any time. Merchants may be reluctant to do so, however, as many have likely invested significant resources into the creation of CurrentC.
MCX executives have said that the exclusivity agreements are "closer to months than years" and have been put in place to offer "breathing room" for the development of CurrentC. The Apple Pay competitor is currently being tested in a limited number of markets, with a release planned for next year.
The firm says that it is looking into a potential class action lawsuit that would aim to restore Apple Pay at CVS and Rite Aid stores, and it is currently asking to speak with consumers who may have been affected by the stores' decision to stop offering the payment method.
In light of this situation, Schubert Jonckheer & Kolbe is investigating whether CVS and Rite Aid violated the antitrust laws by banding together with other MCX members in a decision to boycott other payments systems, including Apple Pay. Consumers with phones that support Apple Pay may be able to participate in a class action to restore the service at CVS and Rite Aid retail stores.Both Rite Aid and CVS stopped accepting Apple Pay just over a week ago, disabling the NFC capabilities of their payment terminals to prevent it from being used. Rite Aid and CVS are both members of the Merchant Customer Exchange or MCX, a consortium of retailers developing their own barcode-based payment system called CurrentC.
MCX has confirmed that all of its retail members, including CVS and Rite Aid, are subject to exclusivity agreements that prevent them from accepting alternate forms of payment, but all MCX members are free to leave the group at any time. Merchants may be reluctant to do so, however, as many have likely invested significant resources into the creation of CurrentC.
MCX executives have said that the exclusivity agreements are "closer to months than years" and have been put in place to offer "breathing room" for the development of CurrentC. The Apple Pay competitor is currently being tested in a limited number of markets, with a release planned for next year.
Related Roundup: Apple Pay
Tag: CVS
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56 months ago
Yes I suffered deep trauma. I walked into a convenience store to purchase my lunch without any money on my person, and when I went to pay for my three two liter bottles of soda and giant bag of candy bars they told me I couldn't pay by waving my telephone at them.
I have never been so outraged. My pain and suffering inflicted by this flagrant human rights violation are as real and I am seeking 2.8 billion dollars to cover damages to my sanity.
I demand satisfaction.
I have never been so outraged. My pain and suffering inflicted by this flagrant human rights violation are as real and I am seeking 2.8 billion dollars to cover damages to my sanity.
I demand satisfaction.
56 months ago
I'm not sure this is going to fly. As the merchant, they have every right to accept whatever form(s) of payment they wish and they're contractually obligated to MCX to have "exclusivity", which is (probably) legally no different than accepting Visa/MC but not AmEx or Diner's Club.
56 months ago
Don't know if this is good or bad. It could force these companies to re-enable NFC, however it could encourage some other companies to never even install NFC terminals so they cannot be targeted by such legal action.
56 months ago
You guys are sick!
This is a petty lawsuit
I can't even go to mom and pops restaurant without cash
Should we sue them?!
This is a petty lawsuit
I can't even go to mom and pops restaurant without cash
Should we sue them?!
56 months ago
You've gotta be kidding me. Yeah, they're stupid for turning down Apply Pay, but that doesn't mean they don't have the right to do it. How lame. People have no respect for individual/property rights...
56 months ago
This is just silly. Last I recall, the only thing stores are required to accept for payment is cash. They don't have to accept credit cards, NFC, checks, etc. It's their right to refuse those forms of payments, and their right to fail if they do or don't. Blood sucking lawyers have ruined this country, just look at Congress.
56 months ago
It sure doesn't seem petty to me
colluding with your competitors to cut out/set/fix something is a big no no
colluding with your competitors to cut out/set/fix something is a big no no
56 months ago
Ha!! The fact that they would be forced to accept it doesn't sit well with me. Still avoiding them as much as possible.
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