⚖ Oral Arguments, with Context

The First Circuit hears Pizza Hazel versus American Express. Pizza Hazel, Nunan Florist, and Skin Rejuvenation are small merchants that accept AmEx cards through the OptBlue program. They allege that AmEx's merchant rules block them from steering customers toward cheaper payment methods, keeping swipe fees high, and they filed a proposed class action for about eight million merchants. AmEx asked the district court to send the case to arbitration. But the Merchant Operating Guide let AmEx change its arbitration terms, and in 2023 AmEx made new terms effective immediately after merchants had announced claims. The district court ruled that this made the arbitration promise illusory and denied arbitration. An illusory promise looks binding but leaves one side free to back out. The appeal asks who should decide that issue—the judge or an arbitrator—and whether AmEx's change power actually made the agreement unenforceable.

Pizza Hazel, Inc. v. American Express Company (No. 25-2007) — U.S. Court of Appeals for the First Circuit, argued September 15, 2026.