FCRA Credit & Debit Card Receipt Class Actions Spread to Chicago and Indiana – Do Your Credit & Debit Card Receipts Comply?

The latest consumer class action fad, class actions alleging violations of the FCRA regarding information printed on credit and debit card receipts, has now spread to Chicago and Indiana. The plaintiff class action bar has been filing class action cases, initially on the West Coast, under Section 1681c (g) of the Fair Credit Reporting Act (15 U.S.C. §1681c (g)) against major retailers and restaurants alleging that defendants are failing to comply with the FCRA’s requirement that businesses may only print the last five digits of a card number and may not print the card expiration date on an electronically printed receipt given to a consumer.

Section 1681c (g) of the FCRA became effective as to all transactions covered by the statute on December 4, 2006. The plaintiff class action bar wasted little time and multiple class action cases have already been filed in federal courts in California and other states against companies such as Victoria’s Secret, The Limited, Bath & Body Works, Harry & David, Estyle, Gaucho Grill, IKEA, Costco, In-N-Out Burger, El Pollo Loco and California Pizza Kitchen, alleging violations of Section 1681c(g). This “fad” has now spread to Chicago and Indiana. Irst case was filed in the Northern District of Indiana in early April 2007. On April 18, 2007 a prominent Chicago plaintiff class action firm filed the first two FCRA credit card receipt class actions filed in the United States District Court for the Northern District of Illinois. The “feeding frenzy” has apparently begun here as over 40 cases have now been filed in Chicago and Northern Indiana.

FCRA Prohibits Printing More Than The Last 5 Digits of Card Number and Prohibits Printing Expiration Date on Electronically Printed Receipts Issued to Consumers

In an effort to combat identity theft, as part of the Fair and Accurate Credit Transactions Act (“FACTA”), Congress amended the FCRA to add Section 1681c (g) which requires businesses to truncate credit and debit card numbers and suppress printing of card expiration dates on electronically printed receipts issued to consumers. Specifically Section 1681c (g)(1) provides:

(1) In general. Except as otherwise provided in this subsection, no person that accepts credit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of sale or transaction.

15 U.S.C. §1681c (g)(1). Subsection (g)(2) provides that this provision applies only to receipts that are electronically printed and it does not apply to transactions where the sole means of recording the account number is by handwriting or an imprint of the card.

FCRA Provision Effective as to All Transactions Involving Electronically Printed Receipts as of December 4, 2006.

While the FACTA amendments became effective December 4, 2003, Congress provided a delay in the effective date of Section 1681c (g) to allow businesses to prepare for compliance. Section 1681c (g) provides that it is not effective until December 4, 2006 for cash registers first put into use before January 1, 2005. However, as to cash registers which were put into use after January 1, 2005, it was effective as of the date the cash register was first put into use.

FCRA Provides for Statutory Damages of $100 to $1,000 Per Violation for Willful Violation of Section 1681c (g).

Under Section 1681o of the FCRA a plaintiff may bring an action for a violation of the FCRA and recover actual damages for a negligent violation of the Act. 15 U.S.C. §1681o. The FCRA also provides that a plaintiff may recover statutory damages of between $100 and $1,000 per violation under Section 1681n (15 U.S.C. §1681n), if plaintiff proves the defendant willfully violated the FCRA. The named plaintiffs in the Chicago cases filed thus far are seeking sta