• Update on D.C. District Court’s Determination to Vacate Key Provisions of Regulation II
  • August 15, 2013
  • Law Firm: Alston Bird LLP - Atlanta Office
  • On August 14, 2013, Judge Richard J. Leon of the U.S. District Court for the D.C. Circuit held a status hearing regarding NACS v. Board of Governors of the Federal Reserve System (NACS v. Board). In a memorandum opinion released July 31, 2013, the court held that the Board of Governors of the Federal Reserve (“Board”) “clearly disregarded” the intent of Congress in developing the interchange fee limitations and network exclusivity requirements set forth in Regulation II, Debit Card Interchange Fees and Routing (“Regulation II”). In its opinion, the court determined that the only appropriate remedy was to vacate the specific provisions of Regulation II at issue and to remand to the Board for development of regulations that meet the statutory standard. However, in recognition of the disruptive effect of the ruling on regulated entities and their commercial relationships, the court stated that it would stay the vacatur of Regulation II in order to permit the Board to develop replacement regulations.