Professor Muris Testifies on Law and Economics of Interchange Before House Subcommittee
Professor Timothy J. Muris, Foundation Professor of Law and former chairman of the Federal Trade Commission, provided testimony on the "Law and Economics of Interchange" before a February 15, 2006, hearing of the House Committee on Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection. In his testimony, Muris said, "The inevitable consequence of allowing the merchants to cap the prices they must pay to accept payment cards will be to increase the price that consumers pay for their cards. The merchants' efforts to regulate prices, therefore, pose a direct threat to the American consumer. If consumers understood the threat that the merchants' campaign poses to the plastic in their wallets, I suspect that we would see nothing less than a revolt."
Muris went on to say, "I have witnessed the full fury of the aroused American consumer. While chairman of the Federal Trade Commission, I led the agency in riding a wave of public resentment to create the National Do Not Call Registry. I suspect that many Americans feel as strongly about their plastic as they do about their dinner hour."