The foundation of consumer protection policy is respect for consumer choice. Modern consumer protection recognizes the need to preserve information markets and to carefully structure interventions to ensure compatibility with how consumers actually process information.

Plastic payment cards are one of the great innovations of the twentieth century. Like the microchip, the personal computer, and the cellular telephone, payment cards have become ubiquitous after only a few decades of use, transforming the way business is conducted. Yet, payment card companies...