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September 10th, 2021

American Express Card Acceptance Agreement

Fees. You are required to make all changes to the transfers within 30 days in writing from us. Even if you transmit loading data and transmission data electronically, you must complete and keep fee statements and credit statements. When you update your chip and PIN acceptance system for other payment products, you agree to abide by the specifications we provide to enable smart card acceptance. Italian Colors restaurant sued American Express along with other merchants for allegedly violating the cartel for forcing merchants to accept American Express credit cards and pay exorbitant prices. In the agreements these merchants signed with American Express, they agreed to use bilateral arbitrations rather than class actions in dispute resolution. Italian Colors argues that this bilateral arbitration clause would entail prohibitive costs for the exercise of its legal rights. This effectively immunizes American Express from any liability under the Sherman Antitrust Act. Therefore, the courts do not have to enforce the arbitration agreement in this context. American Express argues that courts should abide by the terms of arbitration agreements, unless the terms are contrary to U.S. substantive law. From a political point of view, Italian Colors argues that arbitration is a poor way to justify cartel and abuse claims, as the length of arbitration proceedings would create problems for potential plaintiffs, create difficulties in pursuing a claim before the expiry of the limitation period, and eliminate a right of deterrence for business abuse.

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