Washington Information Network
Washington's resource for political activity and issues important to retail industry professionals. Distributed to 2,800 subscribers
April 10, 2013
Washington Retail Association Newsletter
 Staff Contacts

 Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

 

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

 

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

tammie@retailassociationservices.com  

 

Jim Szymanski

Director of Public Affairs
360.943.9198  ext. 12

 

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In This Issue...
How will the health care penalties work?
Budgets, budgets and taxes
Senate, House budgets introduced
WRA commentary on Inslee's new taxes published online
WRA co-sponsors three free webinars this year
Legislators entertain Senate, House budgets
Retro outperforming state fund
WRA urges retailers to reject court settlement on swipe fees
Oregon promotes no sales taxes in commercial, video
WRA shipping service redesigns, improves websites
Immigration reform bills expected in Congress this year
Beer, oil industries protest Inslee's tax proposals
Temporary health exchange website launched
Growth in Washington business taxes outpaces nation, new report says
Research Council annual dinner set for June 4
Homeland Security issues new I-9 hiring form
Free disaster survival seminar in Bremerton tomorrow
Safety tip
Breakfast for Heroes set for June 27
Save the date, Tacoma port breakfast meeting on May 23
New director named at Enterprise Washington
Healthcare compliance webinar available online
RILA webinar next week Tuesday regarding swipe fee settlement

How will the health care penalties work?

By Jan Teague, President/CEO

 

I was struck by the difference that a company might pay if managers decide that it would be cheaper to pay Federal penalties than to provide health care insurance. 

 

Let's say that a business has a number of small stores with a total employment of 70 people.  If the company didn't offer health insurance, it would pay a penalty of $140,000.  If it did offer health insurance, the coverage could cost $720,000.  Now that difference really catches my attention. 

 

It's not only the difference in the two options that catches my eye, it's the fact that the company now has to incur a penalty of $140,000 per year for not offering health insurance.  Think about that. 

 

I see this penalty as a tax even though it's not being called a tax.  I haven't quite figured out how this money will trickle back into the health care system, but I do know from years of watching this kind of thing that the value of that $140,000 will be much less meaningful by the time it gets back to any citizen in the form of health care.  Many government workers will have to be paid to handle that money which means that once again, government will grow and taxpayers will have to fund that government growth.

 

I have heard that companies may decide to curtail their hiring or cut back on their employees thanks to new requirements to offer health care coverage.  Businesses are already beginning to plan for their upcoming year, the supplies they need to order and the employees they need for different seasons.  They also will consider the potential for future sales that are often based on their local area's economy.  Some local communities will be hit much harder by the health care law and some types of businesses will be hit harder. 

 

We have yet to see the unintended consequences of the new health care law, but private sector jobs are certainly on the chopping block.

 

All we have to do is look at the national jobs report for March.  Job growth was shockingly low and is being blamed on the across-the-board budget cuts that took place last month due to Congress not being able to come to an agreement on the national debt.  News reports indicated that businesses are preparing for the across-the-board cuts even though they haven't been felt yet.  Health care costs will be no different.

 

So how will the penalties work?  They will work to curb job growth, dampen economic development, dampen local government tax receipts, and maybe put additional pressure on the need for increased taxes to cover losses to governments whose sales tax revenues seem to be disappearing before their eyes.

Budgets, budgets and taxes

By Mark Johnson, VP Government Affairs

 

Today the House Democrats held a hearing on their two-year operating budget.  Already released have been budget suggestions by Governor Inslee and a Senate Majority Coalition budget calling for no new taxes. 

 

The Governor's package included over $1.2 billion in taxes.  Democrats tend to call them "revenue enhancements."  The House proposes to eliminate 15 tax incentives that will increase expenses for consumers. Included in these tax proposals are bottled water, eliminating the non-resident sales tax exemption, taxing services, taxing beer, etc.

 

The state's budget process can be complicated.  Let me try to simplify. 

 

The only thing the Legislature and Governor are required to do during session is pass a balanced budget.  Unlike the federal government, the state cannot deficit spend.  All the bills that have been introduced, good, bad, indifferent, aren't required to be acted upon.

 

There will be three main budget proposals considered (the minority caucuses often make a statement by putting out their suggested budgets as well).  The Governor starts the process by releasing his/her vision for Washington.  Then the Senate and House majority caucuses release their visions.  They take turns each year as to which body introduces first.  Once the three budgets are swirling around the major players get together and hammer out one final budget on which they can all agree.  This usually means when it comes to the floor for a final vote by the general membership, there will be no amendments accepted.  Legislators either vote yes or no.  Each leader carefully counts their respective membership to ensure the agreed upon budget passes.

 

All this needs to occur by April 28 in order to adjourn on time.  If that fails, then the Governor can call the legislature back for a "Special Session" in 30- day increments.  The Governor can suggest what the legislature works on but has no legal control over what lawmakers propose or vote upon.

 

Interestingly, bills that died during the regular session can come alive and pass in the special session.  The legislature doesn't have to use the full 30 days.  If  lawmakers get the budget done on the first day, they can adjourn and go home.

 

After the budget is finally done, the Governor gets the last say.  In Washington State, the Governor has section-by-section veto authority.  If he/she doesn't like a provision, the Governor can often chop it out.  All this needs to take place by June 30 because our state's budget cycle ends June 30 and starts July 1.

 

The sprint to finish budget adoption, on Day 87 of the 105-day session, starts today.

Senate, House budgets introduced

 

The state House of Representatives introduced a proposal two-year, $34.5 billion state budget plan today that proposes to eliminate 15 tax incentive including the sales tax exemption Washington State offers to encourage out-of-state residents to shop here.

 

WRA opposes eliminating the non-resident sales exemption because it would reduce sales sufficiently at some stores to threaten layoffs or force some store closures. Instead, WRA favors more spending reductions in the overall state budget.

 

Included in the House budget proposal is removing a tax exemption on bottled water. The House budget would increase spending for education by $1.3 billion.

 

Late last week, the Senate approved its budget proposal in a 30-18 vote. It puts $1 billion more toward education, cuts higher education tuition and raises no new taxes. Lead Republican budget writer, Sen. Andy Hill, said the spending plan allows the state to "live within our means."

 

Republican Sen. Doug Ericksen called the Senate plan a "go-home budget," a reference to the scheduled April 28 adjournment date for the legislature. In recent years, budget disagreements have kept the legislature working overtime in special sessions after regular adjournment dates.

 

Click here to review all current state budget proposals. Click here to review a Powerpoint presentation outlining all tax incentives proposed for elimination in the House proposal.

 

During attempts to reconcile the Senate and House budgets, legislators are expected to debate whether to increase taxes and remove tax incentives, or some combination of both including which spending cuts to approve. Gov. Inslee also has made budget suggestions including his own proposal to increase education funding as mandated in a state Supreme Court ruling.

 

See a Washington Research Council policy brief comparing Inslee's and the Senate's proposals to fund state education.

WRA commentary on Inslee's new taxes published online

 

WRA President/CEO Jan Teague has authored an opinion piece calling into question Gov. Jay Inslee's proposal to repeal a non-resident sales tax exemption currently offered in Washington State.

 

Teague wrote that a repeal is bad policy that would damage economic development and threaten retail jobs prior to the retail industry recovering from the recession. State Employment Security data show there are approximately 6,200 fewer retail jobs in the state compared with January, 2008.

 

In some cases, repealing the exemptions would add hundreds of dollars of cost to the price of more expensive items and discourage sales in Washington State, particularly for small Southwest Washington businesses along the border with Oregon, Teague wrote.

 

Visit Washington State Wire to read Jan's article. The Washington Research Council also posted Jan's article on its website. 

WRA co-sponsors three free webinars this year

 

WRA is offering members three free webinars this year in cooperation with the Council of State Retail Associations.

 

To register ahead of time, click on the following links:

 

*Intro to Social and Mobile Media Marketing, on April 24 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

 

*How small retailers can recognize and prevent shoplifting, on May 21 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

 

*Intermediate Mobile and Social Media Marketing, on June 27 -  6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or  9:30 a.m. MT / 8:30 a.m. PT (Webinar 2).

  

Please contact Jan Teague, WRA's President/CEO, if you have questions at 360-943-9198, Ext. 19 or a jteague@retailassociation.org.

Legislators entertain Senate, House budgets

 

As of today, the Senate and House of Representatives have introduced separate 2013-15 state spending plans they must reconcile before adjourning the 2013 legislative session.

 

By a 30 to 18 vote, the Senate last weekend approved a no-new-taxes budget that it sent to the House.

 

Though the budget will take up most of the remaining 18 days of the scheduled 105-day session, WRA is keeping an eye on several other bills of specific interest to retailers.

 

The forms of many bills are changing by the day, so it is difficult to predict outcomes for them. Regardless, here is a summary of updates on key bills as they were known on Tuesday of this week. Tuesday was the cutoff date for action on bills from fiscal committees.

 

*HB 1422, SB 5517, beer and wine tasting.

WRA is continuing efforts to move these bills out of Rules Committee for floor action. They would expand sampling locations among more retailers.

 

*HB 1364, recycling small rechargeable batteries.

The bill failed to come out of committee. Many stores already recycle these batteries on a voluntary basis. WRA expects proponents to make another proposal in the 2014 legislative session.

 

*SB 5178, flash mob robberies.

 

The bill to curb group robberies organized on social media enjoys bipartisan support. WRA is continuing efforts to obtain floor votes for approval.

 

*SB 5149, pharmacy robberies.

Prospects for the bill after four years of effort appear brighter this year. It would toughen potential penalties for conviction. The bill is in the Rules Committee awaiting floor action. WRA continues its efforts to obtain floor votes from both houses.

 

*SB 5202 , pet food tax.

The bill died in committee, but WRA expects proponents to return for another try in the 2014 session.

Retro outperforming state fund

 

Retrospective Rating programs are again outperforming the state fund workers' compensation program, members of a Retro Advisory committee learned this week.

 

Those favorable results were discussed during a Tuesday meeting attended by Tammie Hetrick, WRA's Vice President of Retail Services.

 

Hetrick said the favorable results were due, in part, to 2011 cost-saving legislative reforms and a lot of hard work by administrators of these Retro programs to provide safety and reduce claim costs. But, she added, further reforms are needed and are being sought this session by WRA to protect the Retro program.

WRA urges retailers to reject court settlement on swipe fees

New website speeds response for retailers

 

WRA President/CEO Jan Teague is asking members to reject a proposed court settlement with Visa and MasterCard regarding fees they charge retailers who do business with those creditors.

 

A new website launched by a coalition of business groups who agree with WRA makes it easier for retailers to opt out of the settlement. Go to http://www.merchantsobject.com to learn more and register opposition to the settlement.

 

Retailers should have received a 27-page notice from Visa and MasterCard regarding a lower court decision on transaction fees. The National Retail Federation, Retail Industry Leaders Association and WRA consider it a bad settlement and are urging retailers to reject the terms before a May 28, 2013 court deadline for objecting to the deal.

 

In exchange for minor financial relief for fees paid, retailers would waive all rights to further litigation against Visa and MasterCard.

 

The settlement notice includes a form Teague urged members to fill out stating that they object to the settlement. By opting out the settlement, retailers lend weight to attempts to negotiate terms more favorable to retailers.

 

To opt out of the proposal, retailers must submit an attached letter to the settlement administrator by May 28. The attachment includes both a letter to object to the settlement and another one-page form to opt out of receiving any payment.

 

At a minimum, WRA is asking that retailers submit a letter of objection that will help when the appeal is heard on the terms of the settlement this fall. The letter of objection can be submitted and will not change a retailer's settlement payment should a retailer want to settle now.

 

It must be mailed to Payment Card Interchange Fee Settlement, P.O. Box 2350, Portland, Oregon 92708-2350 and postmarked by May 28. Retailers are urged to keep a copy of the opt out letter for their records.

Oregon promotes no sales taxes in commercial, video

 

Legislators who will vote on WRA-backed bills this session to waive or contain sales taxes should watch a commercial that has been airing in Washington by Travel Portland.

 

The 15-second commercial that recently has been on major Washington tv stations encourages visitors to shop in Oregon because it doesn't have a sales tax. Tourism promoters in Oregon know the same reality as WRA: lack of a sales tax is an incentive to stretch budgets and to shop.

 

WRA supports HB 1329 and SB 5529 that would allow a sales tax holiday weekend starting this year for back-to-school items. A study shows it would raise government revenues by encouraging shoppers to buy other items on which there is a sales tax.

 

WRA opposes HB 1273, which would repeal the sales tax exemption for out-of-state residents. This tax break has proven to be an effective incentive for Oregon residents to shop across the Columbia River if they work in Vancouver, and similarly for Spokane retailers.

 

Sources: You Tube, Washington Legislature

WRA shipping service redesigns, improves websites

 

The company offering WRA members shipping discounts this week announced several improvements to its website and shipping procedures.

 

Our national partner, PartnerShip, unveiled a new company website and an improved, separate shipping website.

 

The new company website includes new content, live chat, an employee directory and the ability to buy discounted shipping supplies. The new shipping site has streamlined the enrollment process.

 

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining a new shipping service free of charge.

 

And considering new annual shipping rate increases from major carriers, it's a good time to check out WRA's agreement with PartnerShip, a national freight management company committed to reducing shipping costs particularly for small businesses.

 

Savings from the new shipping program can, of course, help you to offset the cost of your WRA membership dues.

  

The program is available to all WRA members with no minimum shipping requirements or obligations. Enrolled customers can save up to 27 percent on select FedEx services and at least 70 percent on less-than-truckload freight shipments arranged through PartnerShip.

 

"The new WRA Shipping Program makes a great addition to our menu of services designed to save our members money," said WRA President/CEO Jan Teague. "This program is clearly advantageous to all WRA members."

Immigration reform bills expected in Congress this year

 

A leader in a U.S. Senate coalition favoring immigration reform said this week he expects a bill to be introduced in the Senate this year.

 

Senator Marco Rubio, R-Florida, did not predict exactly when the bill would be introduced, but said he was confident a comprehensive reform bill would be forthcoming. He said it would include elements to better secure U.S. borders from illegal immigration, an expanded temporary worker program, a method for illegal immigrants to obtain U.S. citizenship and a computerized verification program to confirm eligibility to work before hiring.

 

Under a plan privately in the works, a bill would call for allowing three-year visas to up to 200,000 immigrants a year, Rubio said. Current plans call for illegal immigrants needing to wait 10 years before they could apply for U.S. citizenship, Rubio said. He said the bill would not grant amnesty to illegal immigrants.

 

Immigration is an issue close to the retail industry, which favors achieving a predictable flow of legal residents who are eligible and willing to work.  Rubio spoke on Monday during a business conference call organized by the Retail Industry Leaders Association.

 

Immigration has been a contentious issue in Congress, including previously failed attempts to achieve reform. Click here for updates on the outcomes for any immigration reform bills introduced into Congress.

Beer, oil industries protest Inslee's tax proposals

Newspapers accuse Inslee of breaking campaign pledge

 

The state's beer industry is protesting Gov. Jay's Inslee's proposal to make a temporary beer tax permanent and more widespread.

 

At the same time, state oil refiners are opposing Inslee's proposal to eliminate a tax incentive on "extracted fuel" that's worth about $40 million per biennium. The Olympian newspaper reported the dispute with refiners in this article.

 

Inslee wants to extend a temporary beer tax set to expire on July 1, make it permanent, and expand it to craft beers. Brewers say that raising prices will threaten their livelihoods and be counterproductive to helping the state's financial struggles.

 

Visit End The Beer Tax Now for more information.

 

Newspapers around the state also have begun challenging Inslee on his tax proposal as a betrayal of his campaign pledges against raising taxes. Inslee denies the claims and says he doesn't consider extending existing taxes or repealing tax exemptions as raising taxes.

 

Regardless, newspapers in Walla Walla (subscription required) and Chehalis (subscription required) disagree with Inslee in their editorials.

Temporary health exchange website launched

 

The Washington Health Benefit Exchange has launched a website to begin answering questions about how health care reform will work in the state. The new site will evolve into the online portal where customers will be able to compare policies available to them.

 

Washington is one of a dozen states that elected to establish its own health care exchange accessible through the website, www.wahbexchange.org. The site will begin enrolling customers on Oct. 1 for health insurance policies that will take effect on January 1, 2014.

 

The new temporary site will "re-launch" in the same location later this year.

 

Any questions or comments about the site or the enrollment process can be directed to info@wahbexchange.org or by calling 360-407-4100.

Growth in Washington business taxes outpaces nation, new report says

 

With all the talk of closing business tax incentives in Washington State, it's important to note the relatively large tax burden that businesses here bear compared to the rest of the nation.

 

A report last year by the international accounting firm Ernst & Young concluded that Washington businesses experienced the seventh largest increase among the 50 states in state and local business tax increases from 2010 to 2011. Those businesses paid out 56.8 percent of all the taxes state and local governments received.

 

WRA is aware of the business community's pivotal role in carrying the state's revenue load and therefore opposes unnecessarily adding to that burden, which already is relatively high on a national basis.

 

Click here to review the Ernst & Young report.

 

Source: WashACE newsletter, Ernest & Young

Research Council annual dinner set for June 4

 

Bill Bishop, co-author of a book that details how modern demographics explain recent elections, will headline the Washington Research Council's annual dinner on June 4 at the Bellevue Club.

 

Bishop co-authored The Big Sort, which describes America as increasingly clustered into culturally and politically homogenous communities even as the nation becomes increasingly diverse. Scholars and politicians alike cite Bishop's findings to explain modern election trends and outcomes.

 

For more details about the dinner, visit Research Council, contact dede@researchcouncil.org or call 206-467-7088. A 5:30 p.m. reception will precede the event.

Homeland Security issues new I-9 hiring form

 

By May 7 of this year, employers must shift to using the U.S.Citizenship and Immigration Service's new employment eligibility verification form.

 

The new, longer form is available now for employers who want to get used to the new forms earlier than the deadline for switching over to the new format.

 

The new form is two pages instead of one and includes additional data fields, including an employee's foreign passport information (if applicable) and telephone and e-mail addresses. The immigration service also believes the instructions are clearer for employers and applicants to understand.

 

Visit form to print a copy of it. Visit notice to review the Federal Register announcement about the new form. 

Free disaster survival seminar in Bremerton tomorrow

 

Kitsap County businesses are invited to a free disaster survival seminar on April 11 at the Kitsap Conference Center at Bremerton Harborside.

 

The seminar aims to help businesses prepare for and respond to disasters ranging from floods to earthquakes. It is presented under the auspices of the Kitsap County Department of Emergency Management. Hours are from 9 a.m. to 3 p.m.

 

Many unprepared businesses don't survive disasters or they lose market share if they recover. The seminar will outline steps to maintain continuity through an interruption in service.

 

Pre registration is requested. To register and learn more, click on survive

Safety tip: (one in a series)

The "take two" exercise can improve safety

 

A mental exercise known as the "take two" process can help companies and their employees achieve permanent safety fixes when quick fixes just won't do.

 

To illustrate, imagine coming upon an oil spill on the floor of a worksite. A quick fix might involve cleaning it up without taking two extra minutes to consider the source of the spill. The next day, because the source of the problem was not identified, a worker slips, falls and injures himself at a new spill in the same spot caused by a leaking hose footing.

 

This scenario comes courtesy of the handy safety website, www.toolboxtopics.com. Had a worker followed the "take two" exercise, he/she would have asked: "What's causing the oil spill?" Once the source of the problem is identified and addressed, it's less likely that an injury will occur from a fall.

 

The T-A-K-E (Talk, Actions, Knowledge, Equipment) Two checklist is an effective method in investigating and preventing accidents. In the case of the oil spill, an employee should first talk with a supervisor to determine what caused the leak and how and when repairs will be made. The next step is to take Action and conduct a formal incident investigation and gather facts about the hazard. The process of talking to others and performing an incident investigation brings Knowledge about the incident - when and how it occurred, its cause and appropriate corrective actions. Lastly, the investigation identifies that a leaky hose fitting (Equipment) was the root cause.

 

WRA employs Maria Justin as a safety advisor. She is available to WRA members to make workplace safety visits, to help with organizing a safety plan or to suggest topics for safety meetings. Contact her at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.

Breakfast for Heroes set for June 27

 

A military Breakfast for Heroes has been scheduled on June 27 at the Hilton Bellevue Hotel, 300 112th Avenue S.E.

 

The event is sponsored by Heartbeat, an organization that provides therapeutic services, emergency assistance and morale building programs for active and discharged service men and women in Washington State.

 

Featured speaker for the 7:30 a.m. will be Katherine Theresa Platoni, an Army Reserve clinical psychologist with experience teaching patients methods of reducing suffering from chronic pain and terminal illnesses. Col. Platoni's assignments have included four wartime deployments.

 

To register, click here . 

Save the date, Tacoma port breakfast meeting on May 23

 

Jenny Keehan, Executive Vice President of the Retail Industry Leaders Association (RILA) will talk about emerging retail trends at a Port of Tacoma breakfast meeting on May 23.

 

Keehan will discuss multichannel marketing, showrooming, social media and the current outlook and trends in the retail industry. The port's containerized import operations play a crucial role in supplying retailers with merchandise.

 

The event will take place at the Greater Tacoma Convention and Trade Center in downtown Tacoma, from 7:30 a.m. to 9 a.m.

 

Registration information will be available shortly and supplied in a later WRA newsletter.

New director named at Enterprise Washington

 

Michael Davis, who was Senior Vice President for of political programs for the Business Industry Political Action Committee (BIPAC), the nation's first business political action committee, has been named the new Executive Director of Enterprise Washington.

 

Based in Issaquah, Enterprise Washington is a bipartisan network of companies, associations and private sector leaders working to elect business-minded lawmakers to office.

 

Prior to heading up BIPAC's political programs, Davis directed political affairs at the Indiana Chamber of Commerce. Davis' strength has been in using non-partisan political data as the foundation for political prioritization and organizing businesses in support of business-minded candidates.

 

Davis will be available at an upcoming Enterprise Washington annual meeting and retreat on May 22 a Cedarbrook Lodge in SeaTac. Contact Sonja@enterprisewashington.org or call 425-313-0074 to inquire about membership and to register for the retreat.

 

Source: Enterprise Washington

Healthcare compliance webinar available online

 

Members of the National Retail Federation heard a webinar presented last week covering considerations on complying with the Affordable Care Act.

 

The national health care act takes effect in 2014, but enrollments will begin in October.

 

The presentation was primarily by Neil Trautwein, NRF's Vice President and Employee Benefits Counsel.

 

During the webinar, Trautwein said pricing for national coverage plans is being determined this spring with enrollment scheduled to follow beginning in October. Not enrolling employees can result in fines, but Trautwein said some companies may want to consider paying the fines rather than assuming the added expense of expanding coverage. Uncovered employees still would have the option of accessing care through various state exchanges that will act as clearinghouses for coverage.

 

Trautwein urged companies to begin planning as soon as possible because the move to national health care will have implications regarding company taxes and finances. Under the federal act, employees working 30 or more hours a week are considered full time and eligible for coverage, Trautwein said.

 

Exchanges being established in various states including Washington State are geared for use by small businesses and individuals, Trautwein said. Click here to follow Washington's progress toward establishing a health care exchange.

 

Go to NRF if you a member, but missed the webinar, to register and watch it.

RILA webinar next week Tuesday regarding swipe fee settlement

 

The Retail Industry Leaders Association will conduct a free, one-hour webinar next week to explain how retailers can oppose a proposed settlement regarding fees paid by retailers to Visa and MasterCard.

 

RILA, the WRA and many other business organizations have been urging members to oppose terms of the settlement by a court-imposed May 28 deadline.

 

The RILA webinar will be noon to 1 p.m. (West Coast time) on Tuesday, April 16. It is open to any business that accepts Visa and/or MasterCard. Click here to register.

 

A new website launched by a coalition of business groups who agree with WRA makes it easier for retailers to opt out of the settlement. Go to http://www.merchantsobject.com to learn more and register opposition to the settlement.

 

Retailers should have received a 27-page notice from Visa and MasterCard regarding a lower court decision on transaction fees. The National Retail Federation, RILA and WRA consider it a bad settlement and are urging retailers to reject the terms before the May 28, 2013 court deadline.

 

In exchange for minor financial relief for fees, which have skyrocketed in recent years, retailers would waive all rights to further litigation against Visa and MasterCard.

 

The settlement notice includes a form Teague urged members to fill out stating that they object to the settlement. By opting out of the settlement, retailers lend weight to attempts to negotiate terms more favorable to retailers.

 

To opt out of the proposal, retailers must submit an attached letter to the settlement administrator by May 28. The attachment includes both a letter to object to the settlement and another one-page form to opt out of receiving any payment.

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