The Ninth Circuit Affirms Dismissal of Nearly Identical Franchisee Tying Claim

Posted by : Matthew Wild | On : July 15, 2008

On July 11, 2008, the Ninth Circuit affirmed dismissal of a franchisee’s tying claim regarding credit and debit card processing services that was nearly identical to a claim that Judge Posner rejected on June 23, 2008 in Sheridan v. Marathon Petroleum LLC. (See July 11, 2008 Post). In Rick-Mik Enterprises Inc. v. Equilon Enterprises, LLC, No. 06-55937, 2008 WL 2697793 (9th Cir. July 11, 2008), a franchisee claimed that the requirement that it use the franchisor’s credit and debit card processing services was tying in violation of Section 1 of the Sherman Act. The Ninth Circuit rejected this claim for the same reasons that the Seventh Circuit did in Sheridan. The Ninth Circuit affirmed dismissal because that the complaint lacked (1) allegations that Equilon had market power in the gasoline franchise market and (2) credit and debit card processing services was not a distinct product from the rest of the Equilon gasoline station franchise.

Comments (2)

  1. Credit Card Processing Blog said on 12-08-2008

    Credit Card Processing Blog…

    All business owners need credit card processing to compete in the market. Competition will take major marketshare if you don’t have a merchant account….

  2. Credit Card Merchant Services said on 24-08-2008

    Credit Card Merchant Services…

    Credit card merchant accounts are a must in business today, as customers prefer to use their credit cards when making a purchase. Thanks for a good post….

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