Credit Card Receipt Violations Bring Massive Headache
An Illinois Appellate court has vacated a $4.3 million settlement in a class action brought against a merchant for allegedly violating the Fair and Accurate Credit Transaction Act (FACTA) when it printed the first six and last four digits of customers’ 16-digit credit card account numbers on its receipts. Under the accord, class members received $12 merchant gift cards, while the named plaintiff received $4,000 and class counsel was awarded $500,000. A class member objected to the settlement. Among other procedural deficiencies, the court found the record to be devoid of facts that would have permitted a reasoned judgment that the class settlement was fair, reasonable and in the best interests of all affected. Thus sending litigants back to the drawing board.