FMI Welcomes Illinois Ruling Maintaining Prohibition of Swipe Fees on Sales Tax

Arlington, VA - Today, FMI – The Food Industry Association applauded a ruling by the Chief Judge of the Northern District of Illinois Eastern Division that upheld the Interchange Fee Prohibition Act. Passed in spring 2024, this law prohibits levying swipe fees on the sales tax portion of a credit card transaction. FMI Chief Public Policy Officer Jennifer Hatcher offered the following statement. 

“FMI applauds the court decision today that preserves this first-in-the-nation law to prohibit charging retailers and consumers swipe fees on the sales taxes portion of a credit card transaction. This decision will provide relief to consumers and food retailers – which have an average profit margin of just 1.7% and chase pennies every day. This ruling confirms what the American people already know to be true – that these kinds of swipe fee schemes are nothing more than a tax on a tax.” 

About FMI

As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org