Legal Alert: Cash Free Retailer in D.C.? Prepare for Changes on October 1, 2023

The Cashless Retailers Prohibition Amendment Act of 2020 (the Act) becomes legally enforceable on October 1, 2023, after years of delays. The Act makes it unlawful to discriminate against customers using cash at most retailers in D.C. This is an important change for all businesses to note, particularly those that switched to virtual or card-only payments during the COVID-19 pandemic and now may need to modify practices.

Scope of the Act

Under the Act, D.C. retailers engaged in direct-to-consumer transactions cannot refuse cash, charge a higher price for cash-paying customers, or post signs on the premises that say cash is not accepted. This includes bars, restaurants, general retailers, food stores, shops, and any other retailers selling tangible personal goods.

There are a few notable exceptions. First, the Act is unenforceable during a declared mayoral public health emergency, such as the previous COVID-19 public health emergency. Next, parking facilities are exempt if they did not accept cash payment prior to December 1, 2020. Online retail sales, as well as those made by phone or mail, are also exempt. Additionally, retailers and food stores may provide a device to convert cash into a card for in-store purchases so long as there are no associated fees, minimum deposits are capped at five dollars, receipts indicating the deposit amount are available, there are no expiration dates or transaction limits on the cards, and cash payment is accepted if cash-to-card services are unavailable for any reason.

Finally, failure to comply with the Act’s provisions constitutes an unlawful trade practice. Consumers may file complaints under the Act with the D.C. Department of Licensing and Consumer Protection, whose director may refer them to the Office of Adjudication for review. Retailers held in violation of the Act are subject to various potential sanctions, including cease-and-desist orders, punitive damages, investigative fees, and reasonable attorney’s fees.

Preparing for October 1

Covered retailers in D.C. that currently do not accept cash or charge a higher price to use cash should immediately begin implementing a plan to comply with the law no later than October 1, 2023, whether through accepting cash or a cash-to-card service. In addition, retailers should make sure to remove any signs and other notices that they do not accept cash or charge a higher price for cash transactions.

Additional information for nonprofits and small businesses is available at the D.C. Bar Pro Bono Center’s resource website: www.lawhelp.org/dc/NPSB.

If you have questions, feel free to contact us at npsb@dcbar.org.

© D.C. Bar Pro Bono Center 2023

This communication is provided by the D.C. Bar Pro Bono Center solely for informational purposes, without any representation that it is accurate or complete. It does not constitute legal advice and should not be construed as such. It does not create an attorney-client relationship between the recipient and any other person, or an offer to create such a relationship. This communication contains information that is based, in whole or in part, on the laws of the District of Columbia and is current as of the date it is written. However, laws vary from state to state and may change from time to time. As a result, the information may not be appropriate for anyone operating outside the District of Columbia and may no longer be timely. Consult an attorney if you have questions regarding the contents of this communication.