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From: wales@ucla-cs.UUCP
Newsgroups: net.legal
Subject: Re: credit vs cash sales
Message-ID: <904@ucla-cs.ARPA>
Date: Wed, 22-Aug-84 12:57:00 EDT
Article-I.D.: ucla-cs.904
Posted: Wed Aug 22 12:57:00 1984
Date-Received: Thu, 13-Sep-84 05:35:25 EDT
References: <43@cca.UUCP>
Organization: UCLA CS Dept.
Lines: 41

Regarding the laws that say you can't impose a surcharge for using a
credit card, but you can give a discount for cash, I question whether
there really is a workable difference between these two situations.

Case in point:  A sci-fi bookstore here in West L.A. ("A Change of
Hobbit") has posted a sign at the cash register saying approximately
the following:

      You are welcome to use MasterCard or VISA, but please note
      that our actual prices are 4% above the marked prices.  We
      give a 4% discount for payment by cash or check.

(I think it was 4% -- might have been 5% or 6% -- but the principle is
the same in any case.)

In actual practice, of course, the store uses the prices marked on the
books to compute the amount of sale -- then tacks on an extra 4% if you
pay with plastic.

As far as I'm concerned, this is nought but a thinly veiled 4% surcharge
for using a credit card -- yet, since nothing says a merchant has to
charge the manufacturer's suggested retail price on a book, it seems to
be perfectly legal!

Two questions regarding this practice:

(1) If the above travesty is legal, then it seems to me that there is no
    point in distinguishing between "surcharge for credit" and "discount
    for cash".  Either both should be legal, or both should be illegal
    -- allowing one but not the other seems unworkable unless you are
    prepared to "go all the way" and impose price controls.

(2) If the above is a violation of current laws, what regulatory agency
    should I contact in order to get the merchant in question to change
    his policy to conform to the law?
-- 
    Rich Wales
    UCLA Computer Science Department
    3531 Boelter Hall // Los Angeles, CA 90024 // (213) 825-5683
    ARPA:  wales@UCLA-LOCUS.ARPA
    UUCP:  ...!{cepu,ihnp4,trwspp,ucbvax}!ucla-cs!wales