Councilwoman Heather Hutts looks to ban cashless retail businesses, says they create non-inclusive economy
Los Angeles City Councilwoman Heather Hutts has introduced a motion that seeks to ban retail businesses that refuse cash payments, saying that they create a non-inclusive economy in the city.
"Cashless businesses create an economy in our city that is not inclusive and accessible for all people," Hutt said in a statement. "There are many unbanked groups, including BIPOC and low income communities, that rely on cash to pay for goods and services."
The motion says that the city encourages residents to participate in economic development, which includes the purchase of goods and services.
"We need equity," Hutt said while speaking with KCAL News. "We need to ensure that there's opportunity for everybody to participate in this economic space called Los Angeles."
Notable establishments that have cut off cash payments include Crypto.com Arena and Dodger Stadium.
By limiting how people can pay, it cuts of millions of Americans that don't have bank accounts or who have been denied access to credit, which prevents them from being able to "engage in consumer transactions unless they are able to pay for goods and services in cash."
A recent study by the Federal Deposit Insurance Corporation shows that people of color are affected by the new cashless trend. In 2021, 25% of Black households and 24% of Latino households were "unbanked" meaning they don't have their own bank accounts — a stark comparison to the 9% of unbanked White households.
Not accepting cash payments systematically excludes low-income communities, young people who don't meet age limits of credit or debit cards and senior citizens who have not made the transition to digital payment, Hutt's statement said.
"As a city that has promised to be a safe and fair place for all, we must be proactive in ensuring that all our systems create fairness and equity for each and every individual," the statement said.
Some business owners argue that the decision to go cashless isn't one made easily, but out of necessity to deter thieves who are looking to rip off registers.
If approved by the city council, the motion will call on the L.A. city attorney's office to prepare and present an ordinance that would ban cashless retail businesses.
