Louisiana law banning debit card surcharges takes effect

Louisiana retailers can no longer charge customers extra for using debit cards under a new state law that took effect Saturday, giving consumers new legal protections and expanding the attorney general’s authority to enforce the ban.Senate Bill 254 prohibits retail businesses from imposing a surcharge on customers who pay with a debit card instead of cash, check, credit card or another form of payment.
The law defines a surcharge as any additional amount charged by a retail business that increases the cost of a transaction for the privilege of using a debit card. It does not apply to credit card transactions.
Consumers who are assessed an unlawful debit card surcharge may recover actual damages from the retailer. Before filing a lawsuit, however, the customer must provide written notice of the alleged violation.
If the business reimburses the surcharge and cures the violation within 30 days of receiving notice, the customer may not pursue legal action. The law limits private lawsuits to willful violations, repeated violations or violations that are not corrected within the 30-day cure period.
The measure also authorizes the Louisiana attorney general to bring civil actions against businesses that violate the law.
If successful, the attorney general may recover reasonable attorney fees, court costs and investigative costs. Businesses that violate an administrative or court order issued under the law may face civil penalties of up to $500 for each violation.
Money collected through those penalties will be used by the attorney general’s office to support consumer protection and education efforts.
The law also requires the attorney general to establish a toll-free telephone number and an electronic reporting system for consumers to report unlawful debit card surcharges.
Consumers submitting complaints must provide the name and address of the business, the date and amount of the transaction, the amount of the surcharge and documentation, such as a receipt or invoice, showing the charge.

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