In 2003, President Bush signed into law the Fair and Accurate Credit Transactions Act ("FACTA"). One of the provisions of FACTA prohibits companies from disclosing certain consumer information on credit card receipts. Specifically, the Act provides that "no person that accepts credit cards or debit cards for the transacting of business shall print more than the last five 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). Several states also have analogous statutes on the books.
FACTA provided for a three-year phase-in of its provisions. Nevertheless, many retailers and restaurant chains have since faced a rash of federal class action lawsuits over compliance with the Act.
The potential damages for a violation of FACTA are significant. A defendant that has engaged in willful noncompliance may be liable to the consumer in an amount equal to:
- Any actual damages as a result of the failure or damages not less than $100 and not greater than $1000;
- Any punitive damages as the court will allow; and
- In the case of a successful action, the cost of the action together with reasonable attorney's fees as determined by the court. 15 U.S.C. §1681n(a).
A defendant that negligently failed to comply may still be liable to the consumer in an amount equal to:
- Any actual damages sustained as a result of the failure, and
- In the case of a successful action, the cost of the action with reasonable attorney's fees as determined by the court. 15 U.S.C. §1681o.
Due to the high stakes involved, companies should ensure that they are FACTA compliant.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
