1 of 1
SENATE DOCKET, NO. 710 FILED ON: 1/14/2025
SENATE . . . . . . . . . . . . . . No. 205
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
John J. Cronin
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to price-fixing prohibition and consumer transparency.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 8
SENATE DOCKET, NO. 710 FILED ON: 1/14/2025
SENATE . . . . . . . . . . . . . . No. 205
By Mr. Cronin, a petition (accompanied by bill, Senate, No. 205) of John J. Cronin for
legislation relative to price-fixing prohibition and consumer transparency. Consumer Protection
and Professional Licensure.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act relative to price-fixing prohibition and consumer transparency.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Definitions as used in this Act:
2 a. "Acquirer bank" means a member of a payment card network that contracts with a
3merchant for the settlement of electronic payment transactions. An acquirer bank may contract
4directly with merchants or indirectly through a processor to process electronic payment
5transactions.
6 b. "Authorization" means the process through which a merchant requests approval for an
7electronic payment transaction from the issuer.
8 c. "Clearance" means the process of transmitting final transaction data from a merchant to
9an issuer for posting to the cardholder's account and the calculation of fees and charges,
10including interchange fees, that apply to the issuer and the merchant. 2 of 8
11 d. “Consumer” means any person who has been issued a credit card or debit card or who
12purchases goods or services using an electronic payment transaction or another method of
13payment.
14 e. "Covered credit card issuer" means a credit card issuer that, together with any
15affiliates, had consolidated worldwide banking and nonbanking assets, including assets of
16affiliates, other than trust assets under management, of more than $85,000,000,000 at any point
17during the previous calendar year.
18 f. "Credit card" means a card, plate, coupon book, or other credit device existing for the
19purpose of obtaining money, property, labor, or services on credit.
20 g. "Debit card" means a card or other payment code or device issued or approved for use
21through a payment card network to debit an asset account, regardless of the purpose for which
22the account is established, whether authorization is based on a signature, a personal identification
23number, or other means.
24 h. "Debit card" includes a general use prepaid card, as defined in 15 U.S.C. 16931-1.
25"Debit card" does not include paper checks.
26 i. "Electronic payment transaction" means a transaction in which a person uses a debit
27card, a credit card, or other payment code or device issued or approved through a payment card
28network to debit a deposit account or use a line of credit, whether authorization is based on a
29signature, a personal identification number, or other means. 3 of 8
30 j. “Fee schedule” means any schedule, list, table, chart, or similar document or
31agreement, whether publicly disclosed or not, that sets forth or fixes the amount, or the formular
32for determining the amount, of one or more fee rates.
33 k. "Gratuity" means a voluntary monetary contribution to an employee from a guest,
34patron, or customer in connection with services rendered.
35 l. "Interchange fee" means a fee established, charged, or received by a payment card
36network for the purpose of compensating the issuer for its involvement in an electronic payment
37transaction.
38 m. "Issuer" means a person issuing a debit card or credit card or the issuer's agent.
39 n. "Merchant" means a person that accepts electronic payment transactions and collects
40and remits a tax.
41 o. "Payment card network" means an entity that:
42 1. directly or through licensed members, processors, or agents, provides the proprietary
43services, infrastructure, and software to route information and data for the purpose of conducting
44electronic payment transaction authorization, clearance, and settlement; and
45 2. a merchant uses to accept as a form of payment a brand of debit card, credit card, or
46other device that may be used to carry out electronic payment transactions.
47 p. "Person" means any individual, firm, public or private corporation, government,
48partnership, association, or any other organization or entity. 4 of 8
49 q. "Processor" means an entity that facilitates, services, processes, or manages the debit
50or credit authorization, billing, transfer, payment procedures, or settlement with respect to any
51electronic payment transaction.
52 r. "Settlement" means the process of transmitting sales information to the issuing bank for
53collection and reimbursement of funds to the merchant and calculating and reporting the net
54transaction amount to the issuer and merchant for an electronic payment transaction that is
55cleared.
56 s. "Tax" means any use and occupation tax or excise tax imposed by the State or a unit of
57local government in the State.
58 t. "Tax documentation" means documentation sufficient for the payment card network to
59determine the total amount of the electronic payment transaction and the tax or gratuity amount
60of the transaction. Tax documentation may be related to a single electronic payment transaction
61or multiple electronic payment transactions aggregated over a period of time. Examples of tax
62documentation include, but are not limited to, invoices, receipts, journals, ledgers, and tax
63returns filed with the Department of Revenue or local taxing authorities.
64 SECTION 2. Prohibition on network interchange price-fixing on behalf of covered credit
65card issuers and other unfair credit card practices.
66 a. It is unlawful for any payment card network to, directly or indirectly through any
67agent, processor, contract, requirement, condition, penalty, technological specification,
68inducement, or otherwise 5 of 8
69 (1) fix or conspire to fix an interchange fee with, or on behalf of, another covered credit
70card issuer or payment card network;
71 (2) require any person to accept as payment any credit card issued by a covered credit
72card issuer if such person accepts as payment other credit cards that are enabled for processing
73over such payment card network;
74 (3) charge a consumer or a merchant a fee or assessment due to a disputed credit card
75transaction unless and until a finding of fact concludes that the consumer or merchant is
76responsible for the disputed transaction and the consumer or merchant is provided written
77notification of the finding of fact; or
78 (4) impose a penalty on a merchant based upon the way that merchant lawfully sets prices
79for goods or services.
80 b. It is unlawful for any covered credit card issuer to, directly or indirectly through any
81agent, processor, contract, requirement, condition, penalty, inducement, technological
82specification, or otherwise,
83 1. fix or conspire to fix an interchange fee with, or on behalf of, another covered credit
84card issuer or payment card network;
85 2. receive or charge any interchange fee with respect to a credit card transaction in an
86amount that is included on or determined by a fee schedule that:
87 (i) has been fixed, established, or put forward by a payment card network; or
88 (ii) the covered credit card issuer knows, or reasonably should know, is being used in the
89same calendar year by any other covered card issuer to determine the amount any interchange fee 6 of 8
90with respect to a credit card transaction that such other covered credit card issuer receives or
91charges;
92 3. On or after the date that is 180 days after the enactment of this Act, issue a monthly
93statement to a consumer who has been issued a credit card by the covered credit card issuer
94without disclosing in a clear and conspicuous manner for each credit card transaction listed in the
95monthly statement,
96 (i) whether any interchange fees were charged on the credit card transaction; and
97 (ii) the amount charged for each such interchange fee charged on each credit card
98transaction.
99 (4) charge a consumer or a merchant any fee or assessment due to a disputed credit card
100transaction unless and until a finding of fact concludes that the consumer or merchant is
101responsible for the disputed transaction and the consumer or merchant is provided written
102notification of the finding of fact; or
103 (5) prohibit or penalize a merchant based upon the way the merchant lawfully sets prices
104for goods or services.
105 SECTION 3. Interchange fees on taxes and gratuities prohibited.
106 a. An issuer, a payment card network, an acquirer bank, or a processor may not receive or
107charge a merchant any interchange fee on the tax amount or gratuity of an electronic payment
108transaction if the merchant informs the acquirer bank or its designee of the tax or gratuity amount
109as part of the authorization or settlement process for the electronic payment transaction. The
110merchant must transmit the tax or gratuity amount data as part of the authorization or settlement 7 of 8
111process to avoid being charged interchange fees on the tax or gratuity amount of an electronic
112payment transaction.
113 b. A merchant that does not transmit the tax or gratuity amount data in accordance with
114this Section may submit documentation for the electronic payment transaction to the acquirer
115bank or its designee no later than 180 days after the date of the electronic payment transaction,
116and, within 30 days after the merchant submits the necessary documentation, the issuer must
117credit to the merchant the amount of interchange fees charged on the tax or gratuity amount of
118the electronic payment transaction.
119 c. This Section does not create liability for a payment card network regarding the
120accuracy of the tax or gratuity data reported by the merchant.
121 d. It shall be unlawful for an issuer, a payment card network, an acquirer bank, or a
122processor to alter or manipulate the computation and imposition of interchange fees by
123increasing the rate or amount of the fees applicable to or imposed upon the portion of a credit or
124debit card transaction not attributable to taxes or gratuities to circumvent the effect of this
125Section.
126 SECTION 4. Penalties.
127 a. The attorney general of the Commonwealth may file suit to seek injunctive relief and,
128if appropriate, to collect a civil penalty from any covered credit card issuer or payment card
129network whom the attorney general believes has violated any of the prohibitions in Section 3 of
130this Act. 8 of 8
131 b. An issuer, a payment card network, an acquirer bank, a processor, or other designated
132entity that has received the tax or gratuity amount data and violates Section 4 is subject to a civil
133penalty of $1,000 per electronic payment transaction conducted in violation of this Act, and the
134issuer must refund the merchant the interchange fee calculated on the tax or gratuity amount
135relative to the electronic payment transaction.
136 c. An entity, other than the merchant, involved in facilitating or processing an electronic
137payment transaction, including, but not limited to, an issuer, a payment card network, an acquirer
138bank, a processor, or other designated entity, may not distribute, exchange, transfer, disseminate,
139or use the electronic payment transaction data except to facilitate or process the electronic
140payment transaction; to monitor for, detect, or prevent fraud; to support loyalty, rewards or
141promotional offerings; to tailor products and services to serve customer needs; or as required by
142law. A violation of this subsection constitutes a violation of chapter 93A of the general laws.
143 SECTION 5. Severability.
144 If any of the provisions of this Act are held invalid, the remainder shall not be affected as
145a result; nor shall the application of the provision held invalid to persons or circumstances other
146than those as to which it is held invalid be affected as a result.