Payment Company's 'Prohibited' List Is Focus of Appellate Review

Payment Company's 'Prohibited' List Is Focus of Appellate Review

SAN FRANCISCO — A federal appeals court last week heard oral arguments in a case that could prevent mobile payment company Square Inc. and other card processors from barring adult entertainment products and services from using their payment services.

A three-judge panel that heard the appeal in Robert White v. Square Inc. will decide whether Square Inc. acted illegally by discriminating against the plaintiff by his occupation — a bankruptcy attorney in a small law firm — by blocking him from its online payment platform.

Bankruptcy attorneys, along with 27 other occupations, products and services — including adult entertainment products and services — are listed on Square’s “refusal to service list.”

Square, according to its terms of service, prohibits the processing of numerous types of business transactions, including all adult entertainment-oriented products or services, "in any medium, whether it may be over the Internet, telephone or printed material."

"The White v. Square case presently before the 9th Circuit addresses whether persons excluded from accepting credit cards by non-bank entities such as Square Inc. may file class actions against such non-bank entities based, among other things, on their First Amendment rights to freedom of expression,” attorney William McGrane told XBIZ.

“There is reason to hope either the 9th Circuit or the California Supreme Court will conclude such class-action remedies are available to persons in the adult entertainment business so long as the activities such persons are engaged in are not illegal, i.e., that such activities do not involve prostitution, sex acts by minors, etc."

McGrane represents bankruptcy lawyer Robert White in an appeal of a lower court’s decision to toss the case.

White’s appellate counsel argued last week that the lower trial court erred in finding he couldn’t sue because he never signed up for the service.

His counsel said that White is protected under California’s Unruh Law, which makes it illegal for business establishments to intentionally and arbitrarily discriminate against customers.

Last week, the three-judge panel heard oral arguments and submitted the case for review. A video of oral arguments in Robert White v. Square Inc. can be viewed here at the 24-minute mark.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Seoul Authorities Force Cancellation of Adult Expo for 'Distorting Perceptions of Sex'

Seoul authorities repeatedly prevented 2024 KXF The Fashion — a popular Korean adult industry expo featuring Japanese AV performers — scheduled for this week from finding a suitable venue, leading organizers to cancel the event.

FSC to Hold Discussion on Adult Industry Rights With Congressional Candidate Joe Cohn

Free Speech Coalition will hold a virtual discussion with Joe Cohn, a strong advocate for the adult industry’s rights who is running for Congress in November.

Art Short Film 'The Porn Selector' Starring Kasey Warner Premieres at MoMA

“The Porn Selector,” a short film directed by visual artist and filmmaker Lou Fauroux and starring Kasey Warner, premiered earlier this month at the Museum of Modern Art (MoMA) in New York.

Sophie Dee, Ricky Johnson to Deliver 'XBIZ Talks' at Miami Conference

XBIZ is pleased to announce that Sophie Dee and Ricky Johnson will each deliver an “XBIZ Talk” at next month’s XBIZ Miami conference

Ricky Greenwood Directs 'Amuse Bouche' From Dorcel

XBIZ Award winner Ricky Greenwood directs "Amuse Bouche," the latest release from Dorcel.

FSC to Host Webinar on Derisking and the Adult Industry

The Free Speech Coalition (FSC) is hosting a webinar on derisking, titled "Derisking: Examining Its Impact on the Adult Industry's Access to Banking," on April 24 at 11 a.m. (PDT).

Gia Derza Toplines Pat Myne's 'Squirt for Days 5'

Gia Derza headlines director Pat Myne's "Squirt for Days 5," from Evil Angel.

TeamSkeet Releases Full Version of 'Ripe for the Taking'

TeamSkeet has released the full version of its latest feature, "Ripe for the Taking," starring March AllStar Scarlett Alexis.

Shay Sights Returns to Brazzers for 1st Anal in 10 Years

Shay Sights has returned to Brazzers to performer her first anal in ten years, with Rico Hernandez.

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

Show More