Mastercard loses Supreme Court appeal - Britons may receive payout in next stage

Mastercard has, in recent years, been involved in legal action surrounding its card fees, after former financial ombudsman Walter Merricks raised the issue. The case first came to attention in 2017, when Mr Merricks proposed class action against the credit card provider. He alleged the company breached competition law, and argued this has meant UK banking customers have paid higher prices on purchases from businesses which accept Mastercard. 

In a statement after the ruling, Mr Merricks stated: “I am particularly pleased that the Supreme Court has recognised Parliament’s aim in providing for collective claims where companies have broken competition laws and have caused loss to consumers or small businesses.

“Enforcement of fair competition laws is vital for this country’s market economy and companies who break these laws can now expect not only to be fined by the regulator, but to face much bigger bills in redress claims.”

The decision handed down today means the matter will once again be handed back to the CAT to reconsider.

It will then be up to the tribunal to determine what action is taken next after the guidance from the Supreme Court. 

Proposed action going forward will be laid out as an “opt-out” claim.

This means anyone who was over the age of 16, residing in the UK for at least three months between 1992 and 2008, and who purchased from an establishment which accepted Mastercard, will be part of the action, unless they choose otherwise. 

Rocio Concha, Director of Policy and Advocacy at consumer magazine Which?, commented on the ruling.

She said: “This is a hugely important win for consumers.

“Which? has campaigned long and hard for an effective collective redress scheme and the Supreme Court’s ruling will increase access to justice for consumers and set the standard for collective claims of this nature to proceed to trial.