The majority opinion in Expressions Hair Design v. Schneiderman reaffirmed the Supreme Court’s commitment to the First Amendment, holding that New York General Business Law § 518 was potentially unconstitutional as applied by precluding a business from letting its customers know that they had to pay a surcharge if they wanted to use a credit card because the card company took a chunk out of their fees.
That might make customers unhappy with Mr. Visa, and New York didn’t want any frowns. Better to maintain the delusion that plastic is wonderful and shut the business up.
Section 518 regulates speech. The Court of Appeals concluded that §518 posed no First Amendment problem because price controls regulate conduct, not speech. Section 518, however, is not like a typical price regulation, which simply regulates the amount a store can collect. The law tells merchants nothing about the amount they are allowed to collect from a cash or credit card payer. Instead, it regulates how sellers may communicate their prices. In regulating the communication of prices rather than prices themselves, §518 regulates speech.
Good news, a good decision, even if, as Justice Sotomayor, joined by Justice Alito (?) notes in a concurrence, the Supremes yet again left a complete determination on the cutting room floor. Continue reading


