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Bill

S 205

Relates to a threat to share an intimate image

2025 Regular Session Introduced by Joe Addabbo and 11 co-sponsors

Curb price-fixing by card networks and issuers and boost transparency of taxes and gratuities, protecting merchants and consumers from hidden interchange rules and penalties.

REFERRED TO CODES
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WeVote Research Nonpartisan
Bill Summary · S 205

Summary — S.205 (2025): "An Act relative to price‑fixing prohibition and consumer transparency"

Note: the packet provided includes an inconsistent bill title (“Relates to a threat to share an intimate image”) but the bill text, caption, and petition clearly indicate the subject is price‑fixing prohibition and consumer transparency for electronic payment transactions. This summary reflects the text provided.

Purpose / Intent

The bill seeks to curb coordinated price‑setting and non‑transparent practices in payment card networks and by large credit‑card issuers, increase transactional transparency for taxes and gratuities, and protect merchants and consumers from certain network and issuer practices related to interchange fees, penalties, and dispute handling.

Key definitions (selected)

  • Covered credit card issuer: an issuer (with affiliates) that had consolidated worldwide assets > $85,000,000,000 in the prior calendar year.
  • Payment card network: the entity or network (and its licensed members/processors) that routes authorization, clearance, and settlement for card transactions.
  • Interchange fee: fee established/charged/received by a payment card network to compensate an issuer for involvement in an electronic payment transaction.
  • Merchant, issuer, acquirer bank, processor, electronic payment transaction, tax, tax documentation, fee schedule, gratuity — all defined in the bill.

Major substantive provisions

  • Prohibits payment card networks from, directly or indirectly:

    • Fixing or conspiring to fix interchange fees with or on behalf of another covered issuer or network.
    • Requiring a person to accept a covered issuer’s credit card as a condition of accepting other cards on the same network.
    • Charging a consumer or merchant a fee or assessment for a disputed transaction until a finding of fact assigns responsibility and written notice is given.
    • Imposing penalties on merchants based on how merchants lawfully set prices for goods or services.

  • Prohibits covered credit card issuers from, directly or indirectly:

    • Fixing or conspiring to fix interchange fees with another covered issuer or payment card network.
    • Receiving or charging an interchange fee based on a fee schedule that was fixed/established by a payment card network, or that is being used by other covered issuers within the same calendar year to determine interchange amounts.

  • Clarifies what constitutes tax documentation and allows aggregation of transaction-level or period-level tax/gratuity information.

Who would be affected

  • Payment card networks (e.g., major card brands), large credit‑card issuers (threshold: >$85 billion assets), acquirer banks, processors, merchants (retailers, restaurants, service providers), and consumers using electronic payments. State and local tax authorities may be affected indirectly via tax documentation provisions.

Enforcement, penalties, and gaps

  • The excerpt repeatedly labels the specified practices “unlawful,” but the provided text does not include the enforcement mechanism, civil penalties, private right of action, or the enforcing agency. Those details may appear elsewhere in the full bill or implementing regulations.

Legislative status & timeline (from provided actions)

  • Introduced (Senate): Jan 23, 2025; Read twice and referred to Judiciary.
  • Referred to Committee on Consumer Protection & Professional Licensure: Feb 27, 2025.
  • Passed Senate: Apr 24, 2025; delivered to the Assembly and referred to Codes (House) on Apr 24, 2025.
  • Hearing scheduled: June 2, 2025 (1:00–5:00 PM, B‑2).
  • Related/companion measures listed (HR 2251, A 2226, prior-session S 7881, SD 710).

Potential impact

  • Could limit coordinated interchange rate‑setting among large issuers and networks, potentially reducing interchange‑driven costs for merchants and, indirectly, consumers.
  • Increases protections for merchants against contractual penalties tied to pricing choices and improves dispute‑fee safeguards for consumers and merchants.
  • Likely to prompt compliance and contract changes by networks, issuers, and processors; potential litigation risk if enforcement/penalty language is later added.

If you want, I can: (1) extract and summarize the full text beyond the excerpt you provided; (2) compare this bill to similar federal/state laws (e.g., recent interchange reforms); or (3) draft a short explainer for merchants about how this bill, if enacted, could change merchant agreements and processing practices.

Compiled from official sources — confirm details with the bill’s official record.

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