Under the Fair and Accurate Credit Transactions Act of 2003 (FACTA), receipts printed by businesses are required to truncate credit card receipt information.
This truncation, or shortening of information, on a credit card or debit card receipt is meant to protect the consumer’s account information from potential identity theft or fraud.
However, some businesses are failing to adequately truncate consumers’ information. This places the consumers at risk for identity theft and fraud, and the businesses at risk for potential FACTA lawsuits.
This law only applies to electronically printed receipts, and excludes handwritten or imprinted receipts.
FACTA Credit Card Receipt Truncation
Under FACTA, receipts are allowed to display no more than the last five digits of the consumer’s credit card number. FACTA also forbids displaying any portion of the expiration date.
The FACTA credit card receipt truncation requirement may seem like a minor deal, but has in fact lead to substantial FACTA class action litigation. This wave of litigation may have something to do with the substantial penalties involved in FACTA violations.
FACTA awards statutory damages of up to $1,000 per violation – whether or not the consumer actually suffered any real injury, such as identity theft. The violation itself is penalized.
Businesses of all kinds, from very small companies to massive ones, have been targeted in FACTA lawsuits. These businesses include everything from small mom-and-pop stores to companies like Southwest Airlines and Adidas. Given that each violation can result in a substantial fine, class action lawsuits can result in damaging or even crippling consequences for businesses.
While businesses should be aware and even a little bit afraid of FACTA violations, they can follow some simple safeguards to ensure they do not commit FACTA violations.
FACTA violations can be committed “willfully” or with “reckless regard,” placing an “unjustifiably high risk of harm” on consumers. These various categorizations may result in different levels of penalties for the businesses responsible.
Because FACTA violations are tied to electronically printed receipts, violations are committed via an improperly programmed machine which can print thousands of these receipts. In a class action suit where these violations are uncovered, a business may be required to award plaintiffs statutory damages of millions of dollars in total, as well as whatever punitive damages the court deems necessary.
Some FACTA class action lawsuits against major retailers like Costco or StubHub have reportedly reached billions of dollars in damage claims.
FACTA Class Action Lawsuits
Consumers who have proof that a business did not comply with FACTA rules are allowed under law file FACTA lawsuits against the businesses who committed the violation, collecting damages as well as attorney’s fees. It is simple enough to prove company noncompliance in FACTA cases, because the proof of FACTA violation is found printed clearly on the bottom of receipts.
Check your receipts regularly to make sure that no FACTA violations have taken place. Doing this will protect you from both FACTA violations and identity theft and fraud. Consumers have the right under FACTA rules to file a lawsuit for these simple violations, because they can put consumers in danger.
Free FACTA Class Action Lawsuit Investigation
If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.
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