Subway’s Bid to Dismiss FACTA Receipt Lawsuit Fails

A Florida federal judge dismissed Subway’s motion to dodge a putative class action Fair and Accurate Credit Transactions Act (FACTA) receipt lawsuit.

The lawsuit was brought bya customer alleging the sandwich giant failed failed to follow the federal guidelines surrounding debit and credit card receipts, more specifically on the information printed on the receipts.

Plaintiff Shane Flaum is accusing Doctor’s Associates, Inc., conducting business as Subway, of violating FACTA policy by printing the full expiration date on the receipt.

The company has faced legal action in the past for such infractions, with this class action FACTA receipt lawsuit being the most recent.

Overview of FACTA Violation Allegations

Subway had previously filed a motion to dismiss the FACTA receipt lawsuit, stating that Flaum did not specify the damages or the violations.

The company further stated that even if the allegations are true, the only alleged harm is an increased risk of identity theft and that the risk of future harm is not an actual injury.

Flaum argued that these FACTA violations were willful and dangerous, and that he had suffered injury in multiple ways.

Agreeing with Flaum, U.S. District Judge Cecilia M. Altonaga had denied the motion to dismiss.

Judge Altonaga stated Flaum had adequately illustrated the FACTA violations on the receipts he received.

In addition, Judge Altonaga had stated Flaum had demonstrated sufficient damage by showing that the receipts had indeed revealed “more than the last five digits of the card number.”

Judge Altonaga had referenced a previous FACTA receipt lawsuit, Spokeo v. Robins, stating that the plaintiff must plead an injury that is “both concrete and particularized.”

Flaum filed his claim, stated that he and other customers who made business transactions with Doctor’s Associates, Inc. had experienced revealing credit and debit card receipts.

Flaum cites a printed receipt made from a transaction at Pompano Beach, in which showed the full expiration date of his Visa card and more than the last four digits of the card number.

The Fair and Accurate Credit Transactions Act applies to all electronically printed customer receipts. This includes those printed by cash registers, self-service kiosks, and those provided to customers at restaurants.

On these receipts, under FACTA law, merchants are required to omit or conceal all but the last five digits of the debit or credit card numbers on printed receipts.

The expiration date must also be completely concealed.

Flaum points out that Subway has been sued over FACTA violations before, pointing out instances from 2007, 2008, and 2009.

The class action FACTA receipt lawsuit is seeking damages from $100 to $1,000 per defective receipt for Flaum and the class members he is seeking to represent.

Any customer who received a receipt from Subway showing their card’s full expiration date in the past two years are eligible to join.

The Subway FACTA Receipt Lawsuit is Flaum v. Doctor’s Associates Inc., Case No. 0:16-cv-61198, in the U.S. District Court for the Southern District of Florida.

UPDATE: On March 21, 2017, Subway agreed to pay $30.9 million to settle a class action lawsuit that accused the company of violating the Fair and Accurate Credit Transactions Act by printing credit card expiration dates on its receipts. Court documents indicate that this settlement “sets a new record” and may be the “largest FACTA settlement in the history of FACTA.”
UPDATE 2: November 2018, the Subway credit card receipt class action settlement is now open.Click here to file a claim.UPDATE 3: On May 30, 2019, Top Class Actions viewers are starting to receive checks in the mail from the
 Subway class action settlement worth as much as $52.92.

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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