Federal Judge approves proposed FACTA Receipt Settlement

A federal judge recently gave approval for a FACTA receipt settlement, which will settle allegations from a Class of consumers alleging Microsoft Corporation violated the Fair and Accurate Credit Transactions Act (FACTA).

The company proposed the $1.2 million FACTA receipt settlement, which will potentially resolve the allegations that consumer debit or credit card receipts had revealed too many card numbers.

Consumers argued that these receipts contained too much personal identification information, which put them at risk for identity theft. U.S. District Court Judge Cecilia M. Altonaga had granted preliminary approval for the FACTA receipt settlement between Microsoft and lead plaintiff Carlos Guarisma.

“The court finds that settlement embodied in the agreement is sufficiently within the range of reasonableness so that notice of the settlement should be given as provided in this order,” Judge Altonaga said.

Guarisma had reportedly noticed the FACTA violations after purchasing a Microsoft Surface Pen Tip Kit from a Florida Microsoft location in November 2015. He noted his credit receipt had allegedly shown the first six digits of his card number, along with the last four digits as well as his name and the name of the sales associate who completed the transaction.

Guarisma claimed that this action put him and other consumers higher risk for identity theft. Judge Altonaga also noted that the proposed FACTA receipt settlement had only been made “after extensive arm’s length negotiations” between counsel, along with extensive mediation efforts.

The company and the proposed Class had submitted the potential settlement on Feb. 24, 2017, which noted Microsoft’s alleged FACTA violations that had put Guarisma and other consumers at higher risk for identity theft.

Overview of Proposed FACTA Receipt Settlement

The proposed FACTA receipt settlement would compensate each consumer who submits a valid claim with up to $100.

The proposed Class consists of approximately 66,000 settlement Class Members, and it does not require Microsoft to admit liability for any FACTA violations. Microsoft representatives state that the receipts were caused by a technical malfunction, which has since been fixed after the alleged FACTA mishaps were brought to the company’s attention.

The company had previously tried to have the claim dismissed in July 2016, arguing the settlement demands had surpassed other FACTA class settlements. However, Microsoft’s bid was dismissed and negotiations for the FACTA receipt settlement began.

According to the ruling, Judge Altonaga had found that Guarisma sufficiently established the alleged FACTA violations. The receipt had allegedly violated FACTA law by showing more than the last five digits of the card. Microsoft was accused of not conducting proper precautions to confirm that their receipt software was FACTA compliant.

This FACTA Lawsuit is Carlos Guarisma v. Microsoft Corp., Case No. 1:15-cv-24326, in the U.S. District Court for the Southern District of Florida.

UPDATE: As of August 21, 2017, the Microsoft FACTA settlement website and claim form are available.  Click here for settlement details.

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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