Visa 2012 Annual Report Download - page 112

Table of Contents VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2012
2012, at plaintiff's request and in light of the proceedings in the Watson
case, the court entered an order staying the case until June
21, 2013.
On July 12 and 13, 2012, merchant class actions which effectively mirror the Watson case were initiated in Saskatchewan
( Canada Rent A Heater (2000) Ltd. ) and Alberta ( 1023926 Alberta Ltd. ). In light of the proceedings in the Watson case, plaintiffs'
counsel in both actions advised that no further proceedings will be taken and no Statement of Defense will be required without prior
reasonable notice to the parties.
Dynamic Currency Conversion. On August 31, 2010, Visa received a notice from the Australian Competition and Consumer
Commission (ACCC) regarding a pending investigation into Visa's policies relating to the provision of Dynamic Currency
Conversion (DCC) services. DCC refers to conversion from one currency to another, either of the price of goods or services by the
merchant, or of cash withdrawals by an ATM. The ACCC has the authority to commence proceedings before the Federal Court of
Australia and seek an injunction or fine if it can establish a breach of competition laws. No such proceedings have been
commenced, and the potential amount of any fine cannot be estimated at this time.
Data pass litigation. On August 27, 2010, a consumer filed a class action complaint against Webloyalty.com, Inc.,
Amazon.com, Inc., and Visa Inc. in federal district court in Connecticut. The plaintiff claims, among other things, that consumers
who made online purchases at Amazon.com were deceived into also incurring charges for services from Webloyalty.com through
the alleged unauthorized passing of cardholder account information during the sales transaction (“data pass”),
in violation of federal
and state consumer protection statutes and common law. Visa allegedly aided and abetted the conduct of the other defendants.
Plaintiff seeks damages, restitution, and injunctive relief. The plaintiff voluntarily dismissed Amazon.com as a defendant without
prejudice on October 29, 2010. Webloyalty.com and Visa each filed motions to dismiss the case on November 1, 2010.
On November 19, 2010, the plaintiff filed an amended complaint, adding GameStop Corporation as a defendant, asserting
additional claims against Visa under federal and state consumer protection statutes and state common law, and seeking
certification of a class of persons and entities whose credit card or debit card data was improperly accessed by Webloyalty.com
since October 1, 2008. Webloyalty.com asked the Judicial Panel on Multidistrict Litigation to consolidate with this case, for pretrial
proceedings, a case pending in federal district court in California in which Webloyalty.com and Movietickets.com (but not Visa) are
named as defendants. On February 8, 2011, the Judicial Panel on Multidistrict Litigation denied Webloyalty.com's application to
consolidate the case.
On December 23, 2010, Webloyalty.com, GameStop, and Visa each filed motions to dismiss the amended complaint.
Call center litigation . On April 28, 2011, Francisco Marenco filed a request in the U.S. District Court for the Central District of
California to amend his class action complaint to name Visa Inc. as the defendant. The court granted the request and Marenco filed
the amended complaint on May 6, 2011. The lawsuit alleged that Visa recorded telephone calls to call center representatives
without providing a disclosure that the calls may be recorded, in alleged violation of state law in California and several other states.
On May 31, 2011, the parties executed a settlement agreement in an amount that is not material to Visa's consolidated financial
statements. The court granted preliminary approval of the settlement on July 20, 2011, and on November 30, 2011, the court
entered a final order approving the settlement and entering judgment in the case. This matter relates to and resolves the previously
reported contractual indemnity claim tendered to Visa by a processing client in October 2010.
Korean Fair Trade Commission. Following a complaint lodged by a Visa client, in July 2011 the Korean Fair Trade
Commission (KFTC) initiated an investigation into Visa's requirements for the processing of international transactions over VisaNet.
The KFTC has the authority to issue an injunction or fine; the potential amount of any fine cannot be estimated at this time. Visa is
cooperating with the investigation.
U.S. ATM Access Fee Litigation.
National ATM Council class action. On October 12, 2011, the National ATM Council and thirteen non-bank ATM operators
filed a class action lawsuit against Visa (Visa Inc., Visa International Service Association, Visa U.S.A., and Plus System, Inc.) and
MasterCard in U.S. District Court for the District of Columbia. The complaint challenges
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