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Visa International loses settlement-fee case
A Manhattan judge ruled June 7 that the settlement fee Visa International charges its credit card users who switch to rival MasterCard is illegal. In her judgment, Judge Barbara Jones described Visa's practice as "anti-competitive." MasterCard hopes to benefit from this judgment, as the smaller competitor may now be able to entice some of Visa's top-ranking clientele. Visa had planned to utilize the fees to resolve a $2 billion settlement from a class action suit filed by Wal-Mart against both card issuers. MasterCard earlier settled its part of the suit for $1 million. This suit was related to claims by retailers that they incurred huge expenses to meet card-issuer requirements to accept signature-verified cards.
U.S. companies report better sales, results less than promising
After a dismal business month in April, U.S. companies reported progress for the month of May, but the results have been less than promising. Analysts say that rising gas prices and a slump in growth in the housing sector are affecting retail sales considerably. Sectors such as apparel and home goods performed weakly; however, this was offset by strong performance in other sectors, such as garden goods and groceries. Despite better performance last month, sales were weaker than they were in May of last year. Analysts predict a slowdown in consumer spending, which accounts for nearly two thirds of all economic activity in the United States.
Dell partners with Sam's Club to sell notebooks and PCs
U.S. computer hardware giant Dell, Inc., has announced that it plans to sell its desktop and notebook PCs through Sam's Club Stores, a 500-location network owned by U.S. chain retailer Wal-Mart. This is Dell's latest effort to market its products through a retail chain and reflects a turnaround from Dell's original policy of contacting customers directly and via the Internet. With this move, Dell is developing a new consumer strategy that will include other stores as well. Currently, Dell plans to place only two lower-end models on display at Sam's Club.
China returns U.S. products that do not meet SFDA safety standards
The State Food and Drug Administration (SFDA), China's food-safety agency, has destroyed or returned certain food products shipped from U.S.-based companies. The agency claims the products did not meet Chinese food-safety standards. They further stated that toxins such as bacteria and sulfur dioxide were discovered in them. The companies identified were K-Max Health, CMO Distribution, and Supervalu's international division. This development follows a number of scandals involving contaminated Chinese shipments to the United States. Earlier, U.S. authorities recalled pet food containing wheat gluten bought from a Chinese company following the deaths of large numbers of pets. Also, the U.S. Food and Drug Administration recently issued a health warning to consumers about toxins present in a shipment of Chinese toothpaste.
Wal-Mart to sell Skype products
U.S. retail giant Wal-Mart has announced it has struck a deal with Skype to sell Skype's range of products, including webcams, headsets, and other equipment, at its more than 1,800 stores across the country. Skype specializes in telecommunications, computer-communication gadgets, and communication technology. Currently, Skype offers free PC-to-PC Internet call service. It also offers other paid services to customers who wish to make calls to land-based or cellular networks. Companies such as Motorola, Plantronics, and Logitech International currently manufacture equipment that supports Skype services. Although other chains, such as Best Buy, stock Skype equipment, Wal-Mart is the first store that has dedicated an entire section to Skype products.
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